Visa Files an Application Towards the Development of its Digital Currency
Visa is planning the development of its digital currency on a blockchain as it filed an application with the U.S. Patent and Trademark Office.
The application by the financial giant was filed on November 8 last year and based on an application released May 14, inventors Simon J. Hurry and Alexander Pierre with the Visa International Service Association in San Francisco have sought a patent for a digital currency recorded on a blockchain and controlled by a central entity computer.
The application mentioned Ethereum as a possible network. There are two records in the application; one of which would indicate the digital currency for an amount associated with the denomination has been created for a public key associated with a digital wallet. The other is the removal of the physical currency from circulation in a fiat currency system.
The application explained a centralized process for the maintenance of the stablecoin’s value. That is, whenever there is generation of digital fiat currency worth one dollar, the central entity ensures the removal of a corresponding physical dollar bill from circulation, for the regulation of the value of the digital fiat currency.
The application noted that the USD is among the fiat currencies to be utilized, while Forbes said the patent could apply to other central bank digital currencies like GBP, JPY, and EUR.
Visa has been doing its best in the cryptocurrency space as the leading U.S. cryptocurrency exchange company, Coinbase, became its principal member. This is one of the steps towards the diversification of the field of cryptocurrency debit cards, thereby promising users a more flexible and familiar interface for earning and accessing cryptocurrency.
Two months ago, Coinbase said it was now a principal member of Visa, thereby allowing the exchange to issue debit cards for spending cryptocurrency. Later, the Fold app (Lightning-compatible mobile app) which provides users Bitcoin rewards while shopping joined Visa’s Fintech Fast Track Program.