Visa has collaborated with ConsenSys, a blockchain technology firm, for building facilities to assist the introduction of central bank digital currencies (CBDCs).
Visa’s head of CBDC, Catharine Gu, informed The Block about the collaboration’s ongoing consultations on growth and potential with central banks globally.
Through the new collaboration, companies would be able to link facilities for providing CBDC-linked payment cards and wallet credentials. Its purpose is to serve as an on-ramp for prevailing networks.
The Visa payment module is presently being integrated with the ConsenSys infrastructure, in order for the platform to be prepared to use business blockchain technology. They are thinking of pilot testing in early summer.
She further informed that the main challenge will be to understand the coexistence of existing payment systems with the new form of money, as well as to understand the role of CBDC over the next two to three years.
Interoperability would also be a challenging task and they will be looking for practical solutions, according to Shailee Adinolfi, director of strategic sales at ConsenSys.
Corporations and governments both are interested in CBDCs. Payment-watchers have queried their likely effect on the financial system and about their use cases.
Adinolfi further added that due to its scalability and privacy qualities, ethereum is frequently desired by governments in development. ConsenSys is already aiding the development of CBDCs in Australia, Hong Kong, France, and Thailand.
