Visa digital dollar is in the offing, the U.S. Patent and Trademark Office has revealed. Visa is working towards creating a digital currency that will be powered by a decentralized computer. This will ride on the blockchain technology and the patent will not only cater to the dollar but other major fiat currencies.
If granted, the Visa will have the rights to digitalize any central bank controlled currency across the globe. Visa applied for the patent towards the end of 2019 but the patenting institution says the process takes some time to publish applications. That is the reason why the request was published today.
Shift from fiat to Visa digital dollar?
The application describes the Visa digital dollar as a computer that is able to accept requests that have all features of fiat currencies such as a serial code and in various denominations. This shift will see the phasing out of fiat in circulation to create space for a virtual currency that is immutably recorded on a global public ledger.
Visa patent application
According to a Visa representative, the company has a knowledgeable team across the globe. This team uses state-of-the-art technology that will come in handy. Making digital dollar work should not be a problem.
While not all patents will result in new products or features, Visa respects intellectual property and we are actively working to protect our ecosystem, our innovations, and the Visa brand.
A senior Counsel at Willkie Farr and Gallagher J. Christopher Giancarlo who has also been actively involved at the Consensus Distributed adds that:
This confirms when the U.S. does big things like the space program and the Internet; there are partnerships between the private and public sector. This patent filing is evidence the private sector is very much at work on the future of money.
Will Congress support a Visa digital dollar?
The Visa digital dollar might get support from unlikely quarters, the congress which has been toying with the idea. A digital dollar came into the limelight during the CARES Act debate and third coronavirus pandemic relief package. Should the Senate approve the proposal, then the Federal Reserve will have a digital dollar and digital wallet in a bid to come up with a sound economic stimulus.
As per the available details, the Visa International Service Association is the patent applicant. However, the applicants are listed as Alexander Pierre and Simon J. Hurry who double up as investors. The application indicates that the Visa digital dollar will ride on blockchain and will have a native virtual wallet.
Increased interest in crypto through Visa digital dollar
The Visa digital dollar is one of the many ventures the payment processor has shown in the crypto and blockchain spheres. Its recent partnership with the Libra project and later withdrawing is a good example. In June 2019 Visa announced its entry into B2B cross-border payment market using DLT to enable fast, cheap and secure payments.
Early this year, Visa allowed Coinbase to issue a debit card that enables the user to spend crypto just like they do with fiat currency. The creation of a Visa digital dollar backed by blockchain is nothing new. This will create an innovative gateway between the fiat and crypto economies.