The request mentions a method that would help digitize physical money. This system could contribute to the fight against the Covid-19 outbreak.
In a recent publication, the United States Patent and Trademark Office (USPTO) revealed that the multinational financial company Visa had filed the request to register a new digital currency. This action suggests that Visa would be developing its cryptocurrency.
According to the description in the request, the project will be aimed at creating a new method to digitize the fiat money that central banks around the world issue and put into circulation. Besides, the company will use large computers capable of processing the information. Visa will use blockchain technology to support the system.
The publication of the Patent and Trademark Office admitted that representatives of Visa filed the request on November 8th, 2018. Despite this, the news was public last May 14th.
Regarding the initiative, the main idea is to use a supercomputer installed within a Central Bank. This computer will create a digital currency that an established blockchain platform will register. It is worth mentioning that the document even detailed data on a banknote of a fiat currency that will be in digital format.
The request states that this project aims to replace fiat money by creating a digital currency that will then take the other currency out of circulation. In this way, central banks around the world could use this digitization method to send funds among them without major inconveniences. This system represents half of the expenses for the transfer of funds and keeps a record of transactions among institutions.
The patent request mentions that the Ethereum blockchain technology could back the fiat money that would turn into digital money through the system. In this way, Ethereum addresses would support the network of transactions that users and banks would use.
The system will proceed automatically and the computer will conduct the complex process in a short time. “Techniques are disclosed, which include receiving, by a central entity computer, a request for digital currency. The request includes a serial number and a denomination of physical currency. The central entity computer generates the digital currency for the denomination, and linked to the serial number”.
In this way, the system could propose a method that would help eliminate physical money from circulation and avoid large costs, since this system can run in an orderly manner and without major economic imbalances.
“The generating includes recording the digital currency on a blockchain. The central entity computer transmits a notification of the generation of the digital currency. The central entity computer causes removal of the physical currency from circulation in a fiat currency system”.
Although Visa has not presented the project, the possibility of conducting it could gain strength during this period of global crisis due to the Covid-19 pandemic. The elimination of physical money from circulation could contribute to the fight against the spread of the disease since people will be able to avoid contact when exchanging physical money.
By María Rodríguez
