Bitcoin news

Visa and ConsenSys study pilot program for central bank digital currency

Visa e ConsenSys, software startup blockchain, are working to develop a central bank digital currency (CBDC) pilot program to explore retail applications such as cards and wallets.

Both companies will first meet with 30 central banks to discuss the goals governments hope to achieve with the government-backed digital currency. The pilot program is expected to start in the spring of this year.

Visa announced Thursday that it will take its crypto services to the next level by partnering with blockchain software firm Consensys to create a central bank of digital currency (CBDC). Notably, the payment giant plans to launch a "CBDC sandbox" in the spring, where central banks can test the technology after coining it on Consensys' Quorum network.

Customers will be able to use their CBDC-linked Visa card or digital wallet wherever Visa is accepted globally, according to Catherine Gu, head of Visa's CBDC, who spoke to ConsenSys.

Gu said that "if successful, the CBDC could expand access to financial services and make government disbursements more efficient, targeted and secure - this is an attractive proposition for policy makers. " Recall that a CBDC is a type of central bank asset that is issued in digital form and can be used by the public, comparable to the US dollar.

The decision comes as regulators around the world struggle to understand how to deal with CBDCs in an evolving financial landscape dominated by cryptocurrency. The idea that cryptocurrencies and digital money will disrupt financial markets or replace fiat currency is an important issue.

MasterCard also announced the launch of a CBDC testing platform in 2020, which allowed banks to simulate the issuance, distribution and trading of CBDCs between banks, financial service providers and consumers.

If Visa is successful, it could help bridge the gap between central banks and financial institutions. Over the past 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 - which account for 90% of global GDP - are considering financial technology in some way.

La China has already launched a series 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 the demand for cryptocurrencies grows.

 

Buying Cryptocurrencies? Exchange Binance Binance

Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

Similar posts

Leave a comment

Your email address will not be published.

Back to top button