- Visa continues to unleash its love for crypto by filing a patent to create a stablecoin on Ethereum blockchain.
- The stablecoin will be pegged to the US dollar but other central bank currencies could also be supported.
Visa has reportedly filed a patent application that will see it develop a digital currency possibly using the Ethereum blockchain. The American company that has presence across the world filed the patent with the United States and Trademark office.
As per the record of the filing, the application was made on February 14. However, it had been filed in November 2018. The application seeks a patent for a digital currency that would execute on a blockchain. Interestingly, the digital currency would be under the control of a central entity computer.
The application mentioned Ethereum as the blockchain that could be used to run the digital currency. In detail, the project will have two records: The first record would show “the digital currency for an amount associated with the denomination has been created for a public key associated with a digital wallet”. The second record refers to the “removal of the physical currency from circulation in a fiat currency system.” In order to ensure that the stablecoin value is stabilized:
“….every time a dollar worth of digital fiat currency is generated, the central entity ensures that a corresponding physical dollar bill is removed from circulation, in order to regulate the value of the digital fiat currency.”
Although the application mentions the US dollar as the currency that will be used in the project, another article by Forbes says that the same mechanism could be applied to other sovereign currencies such as the euro and the pound.
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