The world’s leader in digital payments, Visa (V) +1.33% is working together with ConsenSys, blockchain technology software provider to develop an infrastructure that will help to rollout central bank digital currencies (CBDCs).
According to The Block, Catherine Gu, who leads Visa’s Global CBDC initiative, said that both companies have been holding talks with central banks about the development and potential of CBDC.
Visa and ConsenSys' new technology will be able to connect to existing payment modules. This means that companies will be able to link infrastructure to issue, for instance payment cards and wallet credentials that are linked with CBDC.
Usability for this technology is going to be tested in the spring, said the head of CBDC at Visa, Catherine Gu.
“The next two to three years will be critical” in terms of helping to understand the role CBDCs will have in future payment systems, she said and added further that “the key challenge is understanding how new forms of money can coexist with existing means of payments and existing systems.” (The Block, 2021)
Director of Strategic Sales at ConsenSys, Shailee Adinolfi, said that also interoperability needs to be challenged. “We’re looking at addressing problems in a hands-on fashion.” (The Block, 2021)
CBDCs are currently a hotly debated topic amongst businesses and policymakers alike. The potential effect of CBDC on banks and their use is being questioned by payment-watchers.
ConsenSys is already supporting Australia, France, Hong Kong and Thailand in the development of CBDCs. Adinolfi said that Ethereum (ETH) +3.93% is the most requested blockchain by governments to develop CBDCs as it is scalable and private.
*Stock percentage taken on 13.01.2022 at 11:01.
*Harley-Mckeownhttps, Lucy (13. January 2022). The Block: Visa and ConsenSys team up on CBDC. Last viewed on 13.01.2022 on tech://www.theblockcrypto.com/post/129932/visa-and-consensys-team-up-on-cbdc-tech
