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Visa applies for a patent for a digital currency

May 15, 2020

Visa has submitted an application at the U.S. Patent and Trademark Office to create a digital currency in a blockchain.

According to the application published on May 17, which was filed in November 2018, however, the inventors Simon J. Hurry and Alexander Pierrewith the International Visa Service Association in San Francisco, have registered a patent for a digital currency that is engraved on a blockchain and controlled by a computer in a central unit.

Name Ethereum as a possible network. The request contains two records, one of which indicates that “a digital currency is created for an amount related to the face value for a public key associated with a digital wallet. ” The other record shows the “withdrawal of physical currency from circulation in a Fiat system”..

Visa applies for a patent for a digital currency
Visa applies for a patent for a digital currency

The application describes a centralized process for maintaining the value of stablecoin:

“… each time a dollar of digital fiat currency is generated, the central office ensures that the corresponding physical dollar bill is withdrawn to regulate the value of fiat digital currency.”

While the US dollar is specifically mentioned as one of the fiat currencies to be used, Forbes reported that the patent could also apply to other central bank digital currencies such as the pound, yen and euro: “The physical currency of a central bank anywhere in the world could be digitized.”

Visa increasingly supports cryptocurrencies

In February, Coinbase announced that it has become a primary member of Visa, which will allow the exchange to issue debit cards for cryptocurrency spending.. Two months later, the Lightning-compatible fold app launched a Bitcoin Cash Back (BTC) award card with co-branding in collaboration with Visa’s Fintech Fast Track program.