Visa requests patent for a digital currency based on blockchain

The Patent and Trademark Office of EE. UU. (USPTO) published a patent application that was registered by Visa to create a digital currency. The system is described as a method for scanning coins fiduciary issued by central banks, through a central computer and with technology blockchain.The Visa application was filed originally on November 8, 2018. However, it became public this 14 of may, with the authorship of Simon J. Hurry, and Alexander Pierre. The document proposes a system executed by a computer of a central entity, that receives requests to generate a digital currency registered in a chain of blocks. The request includes the serial number and the denomination of fiat currency, for example, of a banknote or a coin of metal.The objective of this system indicates that the generation of each digital currency would lead to the elimination of the other currency. According to the document of the patent of Visa, the central banks of any place they might implement this method to transfer value and avoid double spending. This includes, on the side of the banks, the possibility of replicating the record of the transaction.The text of the patent application of Visa indicates the procedure in the following way:

Disclosed techniques include receiving, by a computer of the central entity, a request for digital currency. The request includes a serial number and a denomination for a physical currency. The computer of the central entity generates the digital currency for the denomination and is tied to the serial number.USPTO, patent application Visa

Later we read:

The generation includes the record of the digital currency in a chain of blocks. The computer of the central entity transmits a notification of the generation of the digital currency. The computer of the central entity causes the removal of the physical currency from circulation in a system of fiat currency.USPTO, patent application Visa

A digital currency fiat vs Bitcoin

The digital currency fiduciary that proposes Visa through the patent application gives no further details on the functions of the so-called “central computer”. And although it mentions the possibility of a shared log, they do not indicate in what way they validate each conversion or transaction digital currency. In the same way, it is assumed in the text that Visa is not involved with this approach in the monetary policy of the central banks.The digital currency fiduciary that proposes Visa has no relation with the technological foundations and political of Bitcoin. Source: WorldSpectrum/pixabay.comCabe to mention that, for a system of this type does not relate to the technological foundations and political of Bitcoin, which is the main criptomoneda of the ecosystem. Especially if you consider factors such as the equivalence of value between digital currency fiduciary and its physical counterpart. In addition, the document does not express that the records of this central computer or the copies of the chain block shall be public.Visa made a call recently for companies that wish to issue debit cards with bitcoin, through a program called Fast Track Fintech.

Patent of Visa and Covid-19

The patent application of Visa indicates that users would use a digital wallet, a public and a private key to manage the digital currencies or requests. In addition, it suggests that among the potential uses of this technology is the possibility that central banks replace “low friction” of the fiat money circulating in the form of tickets to exchange for digital currencies or crypto.This alternative is relevant in the context of the crisis generated by the Covid-19. However, it does not belong to Visa, the originality of the idea (although it is a step in the private sector), since the cryptocurrencies as bitcoin pose the possibility of dispensing with the issuance of banknotes and metal coins, as a way of making more efficient exchanges of value.The Congress of the EE. UU. considered recently the idea of using a dollar digital during the crisis. Although the measure was not adopted in the law CARES, which is the third aid package in front of the Covid-19, have introduced bills in the House of representatives and the Senate.China has also submitted projects for the economy to migrate completely to a system of digital currency. Even if the e-RMB is still in the testing phase, have already been implemented pilots in Shenzhen, Suzhou, Chegdu and Xion’an. The international community debate whether the issuance of this coin could contribute to global inflation.

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