Visa Teams Up With Consensys To Build Payment Infrastructure For CBDCs
15 January 2022 - 10:17AM
NEWSBTC
Visa and ConsenSys, a blockchain software startup, are working to
develop a central bank digital currency (CBDC) pilot program to
explore retail applications such as cards and wallets. Both firms
will first meet with an estimated 30 central banks to discuss the
goals that governments hope to achieve with government-backed
digital currency. The pilot program is scheduled to begin in the
spring of this year. Visa To Pilot CBDC In Select Countries Visa
(V) announced on Thursday that it will take its crypto services to
the next level by teaming with blockchain software company
Consensys to create a central bank digital currency onramp (CBDC).
The payments giant plans to launch a “CBDC sandbox” in the spring,
where central banks can try out the technology after minting it on
Consensys’ Quorum network. Visa Trades At $214. Source: TradingView
Customers will be able to use their CBDC-linked Visa card or
digital wallet anyplace Visa is accepted globally, according to
Catherine Gu, Visa’s head of CBDC, who spoke with ConsenSys in a
blog post Q&A. Gu Said: “If successful, CBDC could expand
access to financial services and make government disbursements more
efficient, targeted and secure – that’s an attractive proposition
for policy makers.” A CBDC is a type of central bank obligation
that is issued in digital form and can be used by the general
public, comparable to the US dollar. Related article | Visa Survey
Shows Crypto Payments Could Boom In 2022 Countries Are Launching
CBDCs The decision comes as regulators around the world struggle to
figure out how to treat CBDCs in a changing financial landscape
dominated by cryptocurrencies. The notion that crypto and digital
money will upend financial markets or replace fiat currency is a
major issue. Mastercard also announced the launch of a CBDC test
platform in 2020, which allowed banks to simulate the issuance,
distribution, and exchange of CBDCs amongst banks, financial
service providers, and consumers. “Central banks are moving from
research to actually wanting to have a tangible product they can
experiment with,” Chuy Sheffield, Visa’s head of crypto. If Visa is
successful, it might help bridge the gap between central banks and
financial institutions. Visa is accepted by over 80 million
merchant locations worldwide. In the last year and a half, the
number of countries investigating CBDCs has more than doubled.
According to the Atlantic Council’s CBDC tracker, at least 87
different countries — accounting for 90% of global GDP — are
considering financial technology in some way. China has already
started a number of digital yuan pilot initiatives and plans to
accept the currency for the Beijing Winter Olympics. Nigeria and
the Bahamas have their own CBDCs in circulation. In early December,
Visa announced the formation of a worldwide crypto advisory
practice to assist financial institutions in developing their
cryptocurrency operations as demand for crypto goods grows. Related
article | Visa Is Building A Payment Channel Network On Ethereum
Featured image from Pixabay, chart from TradingView.com
Maker (COIN:MKRUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Maker (COIN:MKRUSD)
Historical Stock Chart
From May 2023 to May 2024