Visa files a patent to create a blockchain-based “digital fiat currency” system

Credit card giant Visa has filed a patent application in the blockchain space for developing a "digital fiat currency" model. Visa had earlier pulled out from Facebook's Libra project.

The credit card giant Visa has filed a blockchain patent to develop a digital currency. The application and acquisition of patents are how giant companies truly show their fascination in a particular field. In this case, Visa has demonstrated its interest in developing a digital currency. According to documents, the credit card company seeks to create a system that can create a digital currency of any fiat currency, including the US dollar, the euro, yen, and virtually any other physical currency. 

 

Visa’s patent filing is entitled “Digital Fiat Currency.”

Visa’s patent filing is entitled “Digital Fiat Currency” and was entered into the record earlier this week. However, the patent was initially filed on November 8, 2019. It lists the applicant as Visa International Service Association in San Francisco, California, and cites the inventors as Simon.J Hurry and Alexandre Pierre. According to the patent, a system for a central entity computer will receive requests for digital currencies. These requests will include a serial number and the denomination of the physical currency. The central entity computer would then would create a digital currency based on the denomination of the physical currency. 

 

A central entity could be a central bank that regulates monetary supply. 

The filing says that a ‘central entity’ in this case could refer to “an entity that regulates something. A central entity could be a central bank that oversees a monetary supply.  A central entity, in this case, may implement monetary policy and issue currency. The patent filed by the credit card giant also proposes to associate the digital currency with a digital wallet that uses a private key stored on the digital wallet. 

The credit card giant Visa was among several other companies that abandoned the Libra project last year. Visa pulled out from the Facebook-backed stablecoin project amid the regulatory uncertainty around the crypto project. Now the credit card company has filed its own patent for a blockchain-based digital currency. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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