The U.S. Patent and Trademark Office (USPTO) published that Visa has filed a patent application to create digital currency on a centralized computer using blockchain technology. „This patent applies to digital dollars as well as other central bank digital currencies such as pounds, yen, and euros and so the physical currency of a central bank anywhere in the world could be digitized.”, according to Forbes.
Described as ‘Digital Fiat Currency’ the patent was initially filed by Visa on November 8, 2019, with the USPTO commenting today, “It takes quite a while…” to publish the filing of a patent. Visa’s patent is described as a central entity computer that receives requests that include the serial number and denomination of a physical currency. The creation of the digital currency and the removal of the physical currency from circulation in a fiat currency system is recorded on a blockchain.
According to the application published May 14 — but filed back in November 2018 — inventors Simon 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.
It cites Ethereum as a possible network. The application details two records, 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 record notes the “removal of the physical currency from circulation in a fiat currency system.”
The application describes a centralized process to maintain the value of the stablecoin:
“Every time a dollar worth of digital fiat currency is generated, the central entity ensures that a corresponding physical dollar bill is removed from circulation, in order to regulate the value of the digital fiat currency.”
Visa is becoming more crypto friendly. In February, Coinbase announced that it had become a principal member of Visa, which would allow the exchange to issue debit cards for spending crypto. Two months later, the Lightning-compatible Fold app joined Visa’s Fintech Fast Track Program to roll out a co-branded Bitcoin cashback rewards card.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
