Visa International has filed for a cryptocurrency system patent that is meant to replace physical currency. The system, which utilizes both central banks and commercial banks, leverages a private blockchain to improve the payment ecosystem.Visa’s Cryptocurrency Patent Filing
The United States Patent and Trademark Office (USPTO) published on Thursday a patent application entitled “digital fiat currency,” filed by Visa International Service Association on Nov. 8, 2019.The USPTO published Visa’s patent application for “digital fiat currency” on May 14; it was filed on Nov. 8, 2019. Source: Visa’s crypto patent filing with the USPTO.
The filing is for a fiat-linked cryptocurrency system using “a private permissioned distributed ledger platform.” It describes a central computer, its responsibilities, and key roles of the system: central entities, validating entities, redeeming entities, and users. “A central entity may be a central bank, which regulates a monetary supply,” the document details. Validating entities “are blockchain nodes, which may be peers such as banks.” Redeeming entities “may accept physical currency for exchange for digital fiat currency,” such as an ATM or a bank branch location.
The central entity computer generates the digital currency that is recorded on a blockchain and “may determine that a particular digital currency unit should be added to or removed from the blockchain.” According to the filing’s abstract:The central entity computer causes removal of the physical currency from circulation in a fiat currency system.
The filing further explains that the payment ecosystem may become 100% digital and “cash may be removed from the markets in a frictionless manner” to improve the payment ecosystem. “Users may hold digital currency with the same denomination as the local physical currency.”
It also notes that once the digital fiat currency is i...