Visa filed a patent application for a “digital fiat currency” with characteristics of cryptocurrencies
The Visa payment system has filed a patent application for a “digital fiat currency” with potential for use by central banks, writes The Block. The application was published on Thursday and was originally filed in November 2019.
The authors of the application note that in their invention they sought to combine the advantages of digital and traditional currencies..
“Cryptocurrency systems have advantages over fiat currency systems. For example, cryptocurrency transfers can be faster. In addition, since cryptocurrencies use the blockchain, they are often highly trusted, since the blockchain is an immutable ledger of transactions, ”the document says..
However, Visa states that cryptocurrencies are usually not subject to the same regulation as fiat currencies, and it may not be feasible to transfer the entire national currency system to them, since they require electronic devices to function. The digital currency proposed by the company will have a single manager, the role of which can be performed by a state issuer or a central bank.
Ethereum is mentioned 11 times in the application. The authors admit that it can be used to implement individual parts of the proposed system. They call Hyperledger Fabric as another potential candidate..
A Visa spokesman told Forbes: “Not all patents will translate into new products or features.”.
Former Chairman of the US Commodity Futures Trading Commission (CFTC) Christopher Giancarlo believes that the very fact of filing such a patent application testifies to the willingness of private companies to work with the state to form new methods of money functioning. “When the United States implements major projects such as space programs or the Internet, they involve the private sector in cooperation,” he explained..
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