Visa partners with Consensys to build payments infrastructure for CBDC

Visa and blockchain software startup ConsenSys are Committed to the development of a central bank digital currency (CBDC) pilot program to explore retail applications such as cards and wallets.

The companies will first meet with about 30 central banks to discuss what the government hopes to achieve with a government-backed digital currency. The pilot program is scheduled to begin this spring.

Visa to pilot CBDC in select countries

Visa (V) announced Thursday that it will take its crypto services to the next level by partnering with a blockchain software company Consensus system Create a Central Bank Digital Currency On-ramp (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

Visa’s head of CBDC, Catherine Gu, spoke with ConsenSys in a blog post Q&A that customers will be able to use their CBDC-related Visa cards or digital wallets anywhere Visa is accepted globally.

Say:

“If successful, a CBDC could expand access to financial services and make government payments more efficient, targeted and secure — an attractive proposition for policymakers.”

A CBDC is a central bank bond issued in digital form and available to the public, comparable to the U.S. dollar.

Related Articles | Visa survey shows crypto payments could boom in 2022

Countries are rolling out CBDCs

The decision comes as regulators around the world struggle to figure out how to deal with CBDCs in a changing financial environment dominated by cryptocurrencies. The notion that cryptocurrencies and digital currencies will disrupt financial markets or replace fiat currencies is a major concern.

Mastercard also Announce A CBDC testbed will be launched in 2020, allowing banks to simulate the issuance, distribution and exchange of CBDC between banks, financial service providers and consumers.

“Central banks are moving from research to really wanting to have tangible products that they can experiment with,” said Chuy Sheffield, Visa’s head of crypto.

If Visa is successful, it could help bridge the gap between central banks and financial institutions. Visa is accepted by more than 80 million merchants worldwide.

The number of countries investigating CBDCs has more than doubled in the past year and a half.according to Atlantic Council’s CBDC tracker, At least 87 different countries – representing 90% of global GDP – are considering financial technology in some way.

China has launched a number of digital yuan pilot programs and plans to accept the currency at the Beijing Winter Olympics. Nigeria and the Bahamas have their own CBDCs in circulation.

In early December, Visa Announce As demand for crypto commodities grew, a global crypto consulting business was formed to assist financial institutions in developing their crypto businesses.

Related Articles | Visa is building a network of payment channels on Ethereum

Featured image from Pixabay, chart from TradingView.com

Source link

Leave a Reply

Your email address will not be published.