Visa has partnered with blockchain technology company ConsenSys to create new infrastructure to assist the introduction of central bank digital currencies (CBDCs).
Catharine Gu, Visa’s director of CBDC, told The Block that the duo has been working with central banks worldwide about the product’s development and potential.
The new Visa and ConsenSys technology will be able to interact with current payment modules, allowing businesses to issue things like CBDC-linked payment cards or wallet credentials. It is intended to serve as an access point for existing networks.
The duo is now integrating the Visa payment module into the ConsenSys infrastructure, which will enable the platform to use business blockchain technology.
Gu said that they are now investigating pilot projects to evaluate usability in the spring. “The next two to three years will be essential” in determining the future role of CBDC in payment systems, she said. “The critical issue is figuring out how new kinds of money may coexist with current payment methods and systems.”
Interoperability is also a hurdle, according to Shailee Adinolfi, director of strategic sales at ConsenSys. “We’re looking at a hands-on approach to resolving issues,” she continued.
CBDCs are a major issue of discussion among corporate leaders and government alike. Payments monitors have raised concerns about their intended uses and the possible influence on the financial system.
ConsenSys has already aided the development of CBDCs in Australia, France, Hong Kong, and Thailand. According to Adinolfi, governments have most often sought ethereum for development because to its scalability and privacy attributes.
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