Visa Files for Digital Currency Patent

Share some Bitpinas love:

May 19, 2020 – Visa applied for a patent in creating a digital currency on centralized computers. The utility points to a central bank use case.

The patent filed in November 2019 said this invention will bridge the advantages of cryptocurrency to fiat currency provided by central banks. The patent filing can be found here.

The patent noted the advantage of cryptocurrency systems over fiat currency systems. For example, money transfers can be faster. Also, because of the blockchain, cryptocurrency can be trusted because blockchains are “immutable records of transactions.”

The patent also pointed out the disadvantage of cryptocurrencies (for use of central banks). First, crypto is not regulated. Next, since crypto requires the usage of an electronic device, some segments of a country’s population may not have these electronic devices to use them, hence it is not practical for governments to wholly convert their fiat currency systems entirely into cryptocurrencies.

The patent, in essence, explained how it can address this problem. Generally, a central entity will have control over the monetary system, which could be a central bank.

“Embodiments provide a digital fiat currency system for managing digital fiat currency generated based on physical currency. Embodiments provide a private permissioned distributed ledger platform for managing the digital currency. The digital currency may be recorded to a blockchain in association with data such as a serial number of a corresponding physical currency, allowing a central entity to manage the volume and value of the digital currency.”

But will this patent translate to a product? Not necessarily, said a Visa spokesperson to Forbes Magazine.

“While not all patents will result in new products or features, Visa respects intellectual property and we are actively working to protect our ecosystem, our innovations and the Visa brand.”

The full patent filing can be found here. Patent images here.

Source: The Block

This article is published on BitPinas: Visa Files Digital Currency Patent

Photo by Nathan Dumlao on Unsplash

Share some Bitpinas love:
Follow on social and subscribe to our newsletter
Subscribe
Notify of
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
trackback

… [Trackback]

[…] Find More on to that Topic: bitpinas.com/news/visa-files-digital-currency-patent/ […]

Michael Mislos

A business ad graduate from the Pamantasan ng Lungsod ng Maynila, Mike is the website manager of Bitpinas.com. He is responsible for almost every content you see on the site, from topic/news selection to editing of articles. Mike believes correct information about blockchain and cryptocurrency can empower people to make accurate decisions about the industry, which, in turn, should deter bad actors from taking advantage of crypto & blockchain. [Telegram @mikemislos]