Visa files patent application for digital currency

22. May 2020

Visa has filed an application with the United States Patent and Trademark Office to create a digital currency in a blockchain.

According to the application published on May 17, but filed in November 2018, inventors Simon J. Hurry and Alexander Pierre, with the Visa International Service Association in San Francisco, have applied for a patent for a digital coin engraved on a blockchain and controlled by a central entity computer.

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He cites Ethereum as a possible network. The request details two records, one of which would indicate that “a digital coin is created for an amount associated with the denomination for a public key associated with a digital purse”. The other record indicates the “withdrawal of physical currency from circulation in a fiat system”.

The application describes a centralized process to maintain the value of stablecoin:

“…each time a dollar of digital fiat Bitcoin CodeBitcoin RevolutionBitcoin EraImmediate EdgeThe News SpyBitcoin TraderBitcoin EvolutionBitcoin ProfitBitcoin BillionaireBitcoin Circuit is generated, the central entity ensures that the corresponding physical dollar bill is withdrawn from circulation, in order to regulate the value of the digital fiat currency.”

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While the U.S. dollar is specifically mentioned as one of the trust currencies to be used, Forbes reported that the patent could be applied to other central bank digital currencies such as pounds, yen and euros: “The physical currency of a central bank anywhere in the world could be digitized.

Visa becomes more supportive of crypto currencies

In February, Coinbase announced that it had become a core member of Visa, which would allow the exchange to issue debit cards for spending on crypto coins. Two months later, the Lightning-compatible Fold application joined Visa’s Fintech Fast Track program, to launch a co-branded Bitcoin Cash Back Rewards (BTC) card.