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Visa will patent a cryptocurrency system to replace fiat money

The international company Visa International has filed a patent for a cryptocurrency system that can replace physical money. The new development uses blockchain technology, but at the same time interacts with central and commercial banks.
Source: May 14, 2019, Visa Patent Application Published by USPTO.

The document describes a cryptocurrency system tied to fiat money. The system is represented by the central entity, validating entity, redeeming entities, and users. “The central entity may be a central bank that regulates the money supply,” the document says.

The computer generates a digital currency that is recorded on the blockchain, and “may determine that a particular digital currency unit should be added to or removed from the blockchain.” Validating entities “are blockchain nodes, which may be peers such as banks.” Redemption organizations “may accept the physical currency for exchange for digital fiat currency,” as an ATM or bank branch.

The document says that the ecosystem can become completely digital, and without any problems exclude cash from the markets.“Users may hold digital currency with the same denomination as the local physical currency.” After the release of digital paper currency, “a user or bank may transfer the digital currency from wallet to wallet or store the digital currency on a smart card and transfer the smart card to another entity.”.

It is worth noting that in a comment on Forbes, a Visa representative drew attention to the fact that not all patents lead to the appearance of new products.

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