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The new Visa system could lay the foundation for central banks to exchange fiat currencies for digital currencies (CBDC). The system also suggests a cashless future.

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A new patent application for Visasuggests that the giant payment company is interested in creating a digital system that would replace cash.

The U.S. Patent and Trademark Office (USPTO) published a patent application on Thursday entitled “Digital escrow currency“” The document published by Visa last November says that the system could mint a new currency. Fiat digital and track all emissions on the Blockchain.

According to the patent application document:

A computer implemented method comprising: receiving a request for a digital currency by a central unit computer. The application contains a serial number and a face value of a physical currency. The generation includes the registration of the digital currency in a blockchain.

Visa introduces the digital fiat currency system

To summarize the presentation describes a cryptocurrency system with which it is connected Fiat Who uses a platform Blockchain Private.

An interesting aspect of the system described by Visa is that it is a “Central entity computer“” Although the payment company doesn’t reveal much about what this particular computer would be, it states: “A central unit can be a central bank that regulates a money supply“”

In this sense, it would be part of the company’s role to act as a currency regulator. I would be responsible for managing the volumes and ensuring that the value of the digital currency always stays connected to that Fiat physically. The central computer would also be the only one that could generate new digital money.

Although it does not appear when in fact Visa The project is considering other public or private entities for this system and suggests that the company could become a key infrastructure provider for CBDCs in the future.

A cashless future

Another aspect that should be highlighted in the Visa presentation is the explanation that the payment ecosystem can become 100% digital. “”Cash can be withdrawn from the markets smoothly“Improving payments.

But more importantly, the document suggests that the Visa You can create a digital currency from any fiat currency. the US dollar, the euro, the yen, the pound sterling. In this sense, the presentation adds: “Users can have a digital currency with the same face value as the local physical currency“”

Recently, financial services companies have made advances in technology adoption. Blockchainand highlights its advantages. The current document from Visa It also shows that the company has valued and assimilated the benefits of digital currencies.

Cryptocurrency systems have advantages over Fiat currency systems. For example, money transfers in cryptocurrency can also be faster than traditional money transfers in fiat currency. Because some cryptocurrencies use blockchains, such cryptocurrencies are often trusted because blockchains are immutable transaction logs.

In this description Visa It also addresses the issue of regulation, which cryptocurrencies in general are not subject to. On the other hand, it provides that “not practical for governmentsConvert your systems completely Fiat in digital assets; in particular due to the need for electronic devices to which not the entire population has access. In the end, Visa says the new project will appeal “this and other problemsAssociated with cryptocurrencies.

“You can’t patent something you didn’t invent”

The recent efforts by Visa They show that the huge companies in the electronic payment industry, which have operated under the traditional structure for many years, are now also researching new innovations in the field of money. Visa also filed a patent for a detoken system this month

However, the patent does not necessarily mean this Visa effectively develop a digital asset system in the end. Companies often register patents with novel systems, but do not make plans. In an interview too Forbes, a company spokesman commented on the matter:

Visa has a large global team of inventors and innovators working on the latest payment technologies. Every year we look for patents for hundreds of new ideas. While not all patents result in new products or features, Visa respects intellectual property and we are actively working to protect our ecosystem, innovations and Visa brand..

On the other hand, some ecosystem enthusiasts did not express any particular charm through the news of innovation Visa. “”What would be the consequences of a company trying to patent a protocol that has been essentially open source for more than a decade?Asked a user on Twitter. To Jake Chervinsky, lawyer and GC from connectionreplied that “[Visa] You cannot patent something that you have not invented or that is not new“”

Articles of interest

Sources: UPSTO, Forbes, Coindesk, News.BTC

Hannah Estefanía Pérez’s version / DailyBitcoin

picture of Pixabay



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