Visa international is going to replace physical currency as it has filed a patent for a cryptocurrency system.
The news of patenting was published by The United States Patent and Trademark Office (USPTO) on May 14. However, Visa filled the application of patent on Nov 8, last year by Visa.
Visa wants to patent a fiat-linked cryptosystem that will use a private permissioned distributed ledger platform.
Visa international is going to replace physical currency as it has filed a patent for a cryptocurrency system. The system will leverage from a private blockchain for a better payment system. Moreover, the patented system will use both commercial and central banks. The news of patenting was published by The United States Patent and Trademark Office (USPTO) on May 14. However, Visa International filled the application of patent for Digital fiat currency on Nov 8, last year by Visa. That means the American multinational financial services corporation already made enough progression towards launching the system. According to the report, Visa wants to patent a fiat-linked cryptosystem that will use a private permissioned distributed ledger platform. Hence, the platform will have a central entity computer that will generate digital currency. A blockchain will record this.
Moreover, the central entity computer will decide on adding or removing a digital currency unit in that blockchain. There is also a chance that VISA is going to make a 100% digital ecosystem. A central bank can be a primary entity for the system. In the system, there will be two more entities. These are validating and redeeming entities. Many experts think the application of the central entity computer will be the reason for the elimination of physical currency from circulation in a fiat currency system.
Benefits of Visa’s Fiat-Linked Cryptocurrency System
After starting the digital fiat currency, the user can get three benefits. These are
A user can transfer his smart card to another entity.
Both a user and bank will be able to transfer digital currency from wallet to wallet.
A user can store digital currency on a smart card.
However, Visa is not the first company that has tried to patent a cryptosystem. Even the tech giant Microsoft recently granted with patent by the World Intellectual Property Organization. Microsoft’s cryptosystem uses body activity data.
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