Visa Announces Partnership With Blockchain Technology Company ConsenSys To Develop CBDC Onramp Tool

Big Payment Visa has partnered with blockchain technology company ConsenSys to develop a model that will help medium-term banks and financial institutions create better services for their customers. Bank for the Digital Banking (CBDC) Advertising Update.

Visa says the partnership will tie the new CBDC framework to existing financial ecosystems, creating a viable and authorized way to access the CBDCs of all customers who accept Visa.

“We consulted with nearly 30 central banks to understand their perceptions of CBDC and determine how our network, infrastructure and services can support CBDC,” the Visa expert said.

However, Visa experts said it was not yet possible to predict when and when the Fed or other central banks might release CBDCs.

Unlike cryptocurrencies such as Bitcoin, CBDCs are electronic financial statements of financial institutions, issued with government support and traded on a licensed blockchain basis.

Many countries are now supporting research. The percentage of CBDC research banks has increased in recent years, according to the World Bureau for International Security (BIS), as a third of CBDCs as of 2021. Of those responding to the questionnaire, 86% of medium-sized banks are exploring the potential of CBDCs, and about 60% conduct CBDC experiments or proof of concept.

Catherine Gu, Director of CBDCs at Visa, wrote on her blog: “If the plan is successful, the reach of CBDCs will be further expanded. The project could also lead to greater use of CBDCs. safe and targeted. Sex. Government It's an attraction. »

But, according to Shailee Adinolfi, sales manager at ConsenSys, the widespread use of CBDCs will require a combination of mid-sized banks and established financial institutions.

As an external consultant for ConsenSys, the company assisted National Australia Bank, Bank of Thailand, Société Générale, Hong Kong Monetary Authority and other central banks in developing CBDC pilots.

In the CBDC payment module, Catherine Gu, CBDC director at Visa, said that linking to existing payments can ensure that CBDCs are accepted and used by businesses printing from the ground, which would be beneficial for a production and diversified investments. business. Financial firms can create a new CBDC network ecosystem.

As a business, Visa's CBDC payment module is designed to provide a gateway to existing payments so that the CBDC network can be easily connected to financial service providers. For example, banks can use this template and join their existing process to provide invoices or CBDC-related certificate wallets, etc.

Catherine Gu said, "We agree that the consumer experience is similar to current payments. There will be," she added. . "

Catherine Gu said Visa will work with mid-sized banks, financial institutions and fintech companies to test the model this spring, ready to integrate the model into its technology group.

“Over the next two to three years, it will be important to understand the role that CBDCs will play in future payments. The biggest challenge is how to do it. The new payout record will affect existing and current payouts, ”he said. on research. The systems coexist. "