International payments processor Visa won a patent describing a digital currency protocol on May 14. The system works on a private blockchain and uses native tokens to facilitate transactions. How Forbes ha reportedVisa’s blockchain would feature native “digital dollars” and other central bank-issued fiat currencies.
The measure seeks the digitalization of all major currency pairs, such as the yen, pound, yuan and euro, to ensure faster cross-border trade and secure interbank settlements. Filed under “Digital Fiat Currency,” the patent was first initiated in November 2019. The United States Patent Office (USPTO) commented that such issues take time to complete, considering the legal scrutiny and regulatory backlash on digital currencies and cryptocurrencies.
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Visa and its Digital Fiat Currency
Visa’s patent describes the use of a central computer that receives unique serial numbers and denominations of a particular currency. Upon verification, a “digital currency” is issued and “removed from the underlying fiat” and then recorded on the blockchain. The central computer then transmits a notification of the successful issuance of digital currency to all parties, including the beneficiary, the receiving bank, and the corresponding bank.
The patent was filed under the "International Visa Services Association“, in San Francisco, CA, with engineers Simon J. Hurry and Alexander Pierre credited as “inventors.” The patent further describes the operation of a digital wallet and blockchain.
Previously, Visa had launched several announcements related to the use of blockchain technology for payment processing. In 2019, the company even joined the entrepreneur Libra Association from Facebook, but was eventually pulled in October of that year after citing legal problems.
But his cryptocurrency ambitions remain. In February 2020, Coinbase crypto-bourse said that it partnered with Visa to issue a debit card, which while not based on blockchain, allowed previous users to spend their cryptocurrencies and through an instant conversion from crypto to fiat during the payments.
