"Want to be a global central bank? Visa applies for patent to record national fiat currencies on the blockchain and convert them into digital currencies"

The United States Patent and Trademark Office (USPTO) on Thursday issued a blockchain patent filed by Visa, which will enable the creation of digital currency on a central computer using blockchain technology. The patent, submitted by Visa on November 8, 2019, describes the advantages of cryptocurrency over traditional fiat currency and how blockchain technology can digitize central bank currencies from various countries.

Global Digital Central Banks

The patent is named Digital Fiat Currency. According to the content published by the Patent and Trademark Office, the central computer can receive any fiat currency issued by central banks, convert it into digital currency based on its serial number and denomination, and record the deletion of the original circulating fiat currency on the blockchain. The patent mentions the advantages of blockchain:

Cryptocurrencies are more advantageous than fiat currency systems, such as faster cryptocurrency remittances compared to conventional fiat remittances. Due to the tamper-proof transaction records of the blockchain, cryptocurrencies generally have higher trustworthiness. Additionally, since cryptocurrencies require the use of digital devices, it is impractical for governments to completely convert their fiat systems to cryptocurrencies.

VISA mentions in the patent the argument that various countries lack adequate digital infrastructure and proposes solutions, including the workings of blockchain, public-private key mechanisms, smart contracts, encrypted wallets, and other technologies. Furthermore, the patent indicates that the technology frameworks of Hyperledger under the Linux Foundation and Ethereum can also serve as the underlying systems for digital fiat currency.

J. Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), commented:

VISA's patent application demonstrates that private enterprises are willing to cooperate with governments to reshape the operation of currency, with the private sector striving for the future of money.

VISA's Blockchain Layout

Visa's previous actions have proven its active involvement in digital currencies. Previously, VISA was still a major member of the Libra project, but later announced its withdrawal along with heavyweight members like Mastercard and eBay, as Libra failed to meet all necessary regulatory expectations.

Additionally, in February of this year, Coinbase announced that it has become the first major member of VISA in the cryptocurrency industry. This will enable Coinbase to have the qualifications of an issuing and acquiring institution, allowing it to handle credit card-related business similar to traditional banks.

However, in VISA's patent explanation, it is still unclear what kind of unit the central entity computer will be or who the driving force behind it will be. The document only mentions that the entity could be a regulatory body, a central bank, and have relative relationships with the government of that region.