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Visa builds on-ramp for CBDC with Consensys

Thursday 13 January 2022 09:18 CET | News

Visa has expanded its crypto services by partnering with blockchain software company Consensys to build an on-ramp for central bank digital currencies (CBDC).

The payments player aims to create a CBDC sandbox, available in the spring of 2022, where central banks can experiment with distributing the technology after minting on Consensys' Quorum protocol. 

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. Central banks will likely prefer to manage the payment infrastructure themselves. 

Visa has been involved in crypto-related products since 2019, using its existing payment network as an advantage for building on-ramps for buying crypto, and off-ramps for converting it back to fiat currency. 

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Keywords: Visa, partnership, CBDC, crypto, central bank
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3