empty
13.01.2022 12:44 PM
Visa develops digital currency technology (CBDC)

This image is no longer relevant

Visa has announced that it will expand its crypto services one step further by partnering with blockchain software company Consensys to build an on-ramp for central bank digital currencies (CBDC).

This image is no longer relevant

The payments giant aims to create conditions before spring so that central banks can experiment with distributing the technology after minting on Consensys' Quorum protocol.

The partnership is the latest development in the fast-growing cryptocurrency market, with central banks vying to issue their own digital coins and established financial companies dabbling in crypto payments.

The partnership uses a "two-tier" distribution model for CBDCs. Central banks would design their digital currency on Consensys' Quorum where they would set its monetary and governance rules. They then use Visa's infrastructure to distribute the currency via financial intermediaries like commercial banks.

Eswar Prasad, author of The Future of Money and professor of trade policy at Cornell University, explained some of the benefits of the Visa-Consensys model. It does not exclude payment providers and could create competition for those who can provide the most efficient and low-cost services. In his view, central banks will likely prefer to manage the payment infrastructure themselves.

Visa has been involved in crypto-related products since 2019, using its payment network to buy cryptocurrency and convert it back into fiat currency.

Visa already settles transactions in one stablecoin, and more recently launched a cryptocurrency consulting service that caters to banks exploring their own cryptocurrency plans.

The number of countries exploring CBDC has more than doubled in the past year and a half. According to the Atlantic Council's CBDC tracker, 87 different countries, which represent 90% of global gross domestic product, are expanding financial technology in one way or another.

However, progress and goals within this group have been uneven. Nine central banks, including Nigeria, the Bahamas and seven other Caribbean countries, have launched CBDC. Meanwhile, China is ready to introduce its digital yuan to foreign visitors next month during the 2022 Winter Olympics.

Meanwhile, major central banks such as the Fed are not going to issue a digital coin anytime soon. During a reconfirmation hearing earlier this week, Fed Chair Jerome Powell said that a Fed's long-awaited document on CBDC would be released in the coming weeks. However, he gave no firm timetable beyond that.

A top executive at eCurrency, a company that has been advising the US Treasury and the Federal Reserve on CBDCs for more than a decade, said Congress must give approval before the Fed and US Treasury can issue a central bank-backed token.

The use case for any CBDBs is wide ranging. However, based on conversations with central banks, Visa's CBDC lead Catherine Gu mentioned two main reasons.

First, developing countries could use this technology to provide greater financial access to unbanked population.

Secondly, CBDCs provide developed countries a more efficient distribution of stimulus relief in more targeted ways to juice an economy, like giving the money an expiration date, or permitting it only to be used in certain transactions.

However, there is an obstacle related to user adoption and acceptance of CBDC. This depends on the power the technology would potentially grant to central banks and whether that poses a challenge to the primacy of fiat units like the US dollar, the world's dominant reserve currency.

While CBDCs may provide new monetary policy tools, it is unclear how restrictions will be set in democratic societies and how they will be integrated into the existing financial system.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Yanina
Start trade
通过InstaForex赚取加密货币汇率变动的收益。
下载MetaTrader 4并开启您的第一笔交易。
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

推荐文章

美國銀行預期美元將進一步走弱

在我的評論中,我不斷強調新聞的背景對美國貨幣仍然極具毒性。我不會再一次列出所有導致美元下跌的因素,但我要指出,我並不是唯一持這種觀點的人。

Chin Zhao 00:45 2025-08-18 UTC+2

美金:每週展望

在下週即將公佈的美國經濟報告中,雖然日曆上有不少項目,但並沒有特別值得關注的內容。週二將發佈新屋開工及建築許可數據。

Chin Zhao 00:44 2025-08-18 UTC+2

英鎊——每週前瞻

如我在其他評論中所提到的,未來的一週將再次在地緣政治事件的旗幟下展開。所有最重要的經濟數據已經發布,央行會議也已經召開,特朗普目前正忙於解決烏克蘭和俄羅斯之間的衝突。

Chin Zhao 00:44 2025-08-18 UTC+2

歐元貨幣:每週前瞻

新的一周外匯市場可能會以動盪開場。星期六晚上,在阿拉斯加舉行了俄羅斯和美國領導人弗拉基米爾·普京和唐納德·特朗普之間的談判,主要討論了烏克蘭危機的解決方案。

Chin Zhao 00:44 2025-08-18 UTC+2

美元/瑞士法郎:分析及預測

今天,星期五,由於美國美元整體走弱,美元/瑞士法郎吸引了新的賣家。 市場對週四表現強於預期的美國生產者價格指數的初步反應非常短暫,因為市場預期美聯儲將在九月降息。

Irina Yanina 13:46 2025-08-15 UTC+2

AUD/JPY:分析和預測

根據日本內閣府今天公佈的數據,日本經濟在4月至6月期間同比增長1%。這一數字遠高於分析師預測的0.4%增長,也標誌著從第一季度0.2%萎縮的逆轉。

Irina Yanina 12:47 2025-08-15 UTC+2

XAU/USD。分析與預測

黃金正試圖恢復其上升動能,部分抵消前一日的損失,但市場對未來的走勢仍然不確定。儘管週四的生產者物價指數(PPI)數據強於預期,美國美元仍對價格産生有利影響,吸引了新的賣家。

Irina Yanina 12:42 2025-08-15 UTC+2

黃金價格大幅下跌

昨日,由於通脹上升,交易員降低了對下月聯邦儲備局降息的預期,黃金價格回落至一週低點。 由於對貨幣政策前景的重新評估推動了美元的走強,進一步對貴金屬造成壓力。

Jakub Novak 12:14 2025-08-15 UTC+2

美國經濟依然具有韌性

雖然美元正在努力維持從昨日美國強勁通脹數據中獲得的近期漲幅,但里士滿聯邦儲備銀行行長Thomas Barkin週四表示,他看到美國7月份的消費者狀況出現改善跡象,此前今年早些時候有所疲軟。 在全國商業經濟學會主辦的網絡研討會上,Barkin表示:「我認為七月份的消費活動將會改善。

Jakub Novak 12:06 2025-08-15 UTC+2

美元大幅上漲但幾乎已經回吐所有漲幅

美國美元對多種風險資產大幅上漲,但此後幾乎回吐了所有漲幅。此輪上漲是在公佈美國7月生產者物價指數(PPI)大幅高於經濟學家預期後出現的。

Jakub Novak 11:39 2025-08-15 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.