Visa one of the leading game changers in replacing cash transactions into electronic transfers has now stepped in the blockchain network to improvise the payment system.
It has come up with the idea of combining the central monetary system with validating entries.
Visa Card on Blockchain network
Visa Card had filed a patent to the U.S Patent and Trademark Office(USPTO) way back in November 2018. The authorities have published the filing of patent now.
Commenting on the delay, the USPTO authorities stated, “It takes a quite a while…”.
The application is all about creating a digital currency on a centralized computer using Ethereum Blockchain technology.
The Visa spokesperson speaking on the several innovations by their team all the time said that they approach USPTO and file hundreds of patents every year.
He further added,
“While not all patents will result in new products or features, Visa respects the intellectual property and we are actively working to protect our ecosystem, our innovations and the Visa brand.”
The Idea is Pretty Simple!!
The patent filing is for a cryptocurrency or digital currency system working on a private blockchain technology which is monitored centrally. The filing specifies four main entities,
- Central Entities – Maybe a bank that controls the monetary system
- Validating Entities – the blockchain nodes which may be as difficult and concentrated as banks.
- Redeeming Entities – The ATM’s or bank branches which accept exchange of physical currency for digital currency.
The patent describes its idea of replacing physical cash with digital currency in the patent filed with few simple steps.
The central entity computer would receive a request for a new denomination with a serial number of the physical currency.
The new digital currency is created and the same denomination with the serial number will be removed from the physical currency.
The whole transaction will be recorded on the blockchain technology.
Visa backing digital currencies – Not a new thing
Visa has never treated cryptocurrencies as a threat but rather desired to work on them. Way back in 2018, in an interview, CEO of Alfred F Kelly Jr expressed to support all kinds of payments in the near future. He said,
“We want to be in the middle of every payment flow in the world regardless of how it happens or what the currency is behind it. So if we have to go there, we will go there. But right now, it’s more of a commodity than a payment vehicle.”
Visa with filing a patent for its new innovation could possibly reduce the circulation of physical cash and rather replace them with digital currencies. The transformation always requires user acceptance and his tendency to adopt it. This could probably consume a little time but might be successful in its intentions.