Visa has just announced it has joined forces with blockchain company ConsenSys to develop a module to help central banks and financial institutions create user-friendly services over networks of CBDCs.
The solution will enable consumers to use a payment card or digital wallet linked to a CBDC wherever Visa is accepted, said Catherine Gu, head of CBDC at Visa. She added:
"If successful, CBDC could expand access to financial services and make government disbursements more efficient, targeted, and secure – that’s an attractive proposition for policy makers."
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Gu has referenced incentive payments as an example. According to her, digital currencies will enable payments to be made quickly to the target group of users with cost parameter programming.
The Visa payment module has been designed to make it easier for financial service providers to access CBDCs. Banks and institutions will be able to integrate existing infrastructure with these networks, enabling them, for example, to issue payment cards linked to digital currencies.
Visa expects to move into the use case testing phase of its CBDC module this spring, Gu said.