In Brief:
- Visa joins hands with ConsenSys to develop new infrastructure that will aid CBDCs’ rollout.
- The CBDC payments module by Visa will provide an on-ramp for CBDC networks to current payment networks.
- Visa is currently working to integrate its module with the ConsenSys Codefi CBDC sandbox.
The payments giant Visa announced a partnership with ConsenSys, a blockchain technology company, to develop a new infrastructure to assist the rollout of central bank digital currencies (CBDC).
The CBDC payments module by Visa is designed to give an on-ramp for CBDC networks to current payment networks, allowing them to easily connect to traditional financial service providers.
The new Visa and ConsenSys technology will be able to plug into current payment modules.
Companies will be able to integrate infrastructure to issue CBDC-linked payment cards or wallet credentials using this technology.
Visa is currently working to integrate its module with the ConsenSys Codefi CBDC sandbox, which is powered by ConsenSys Quorum so that the platform can explore enterprise blockchain technology.
ConsenSys Quorum can enable a two-tier CBDC system for central banks to issue and distribute CBDC.
Users will be able to utilize CBDC-linked Visa cards at the checkout if CBDC networks are smoothly integrated into existing banking apps.
Catharine Gu, head of CBDC at Visa, stated “If successful, CBDC could expand access to financial services and make government disbursements more efficient, targeted, and secure – that’s an attractive proposition for policy makers.”
Cuy Sheffield, Visa’s Head of Cryptocurrencies added that “we think that stablecoins and CBDCs will coexist in the future and there’ll be a number of different approaches to creating products based on that.”Â
Visa stated in its announcement that its crypto teams plan to work with central banks on pilot and prototype cases starting in the spring.
In early December, Visa announced the establishment of global crypto advising team to assist financial institutions in developing their cryptocurrency operations as demand for crypto products rises. The services will also assist in the development of concrete initiatives, pilot new customer experiences.
