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Odaily Translator | Nian Yin Si Tang

Summary:

Summary:

- Visa's module is designed to connect central bank digital currency networks with traditional financial service providers.

- Federal Reserve Chairman Jerome Powell said on Tuesday that the agency's report on digital currencies is expected in the next few weeks.

Visa said the partnership will connect the new CBDC framework with the existing financial ecosystem to create a roadmap for adoption and allow consumers to spend CBDC at any merchant that accepts Visa.

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Hot topic "CBDC"

CBDCs differ from decentralized currencies such as Bitcoin because they are issued and backed by governments and transacted on centralized permissioned blockchains.

“We have spoken to nearly 30 central banks to understand their views on CBDCs and to identify ways in which our network, infrastructure and value-added services can support them,” a Visa spokesperson told Blockworks.Federal Reserve Chairman Jerome Powell speaks before the Senate Banking Committee on Tuesdayappointment hearing

A report on digital currencies is expected in the coming weeks, the website said. Powell added that he believes CBDCs and privately issued stablecoins can coexist.U.S. Rep. Tom Emmer Wednesdayproposed a bill

, the bill would prevent the Federal Reserve from issuing CBDC directly to individuals, and stated in a statement that the U.S. government should not compete with the private sector in this area.

A representative for Visa said the company cannot predict whether and when the Federal Reserve or other central banks will launch a CBDC.

“If successful, a CBDC could expand access to financial services and make government payments more efficient, targeted, and secure,” Visa’s CBDC lead Catherine Gu said in a blog post on Thursday. It's an attractive proposition for policymakers."

Gu added that use cases for the digital currency include sending stimulus payments quickly to targeted users with specific spending parameters.

But Shailee Adinolfi, director of strategic sales at ConsenSys, said central banks and traditional financial institutions must work together to see widespread adoption of CBDCs.

“In our work with the central bank, we have seen a strong interest in gaining expertise and support from the private sector,” Adinolfi said in a blog post. “They are interested in piloting specific use cases that will greatly improve the transfer of assets and The efficiencies and resources required for reconciliation.”

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Visa CBDC payment module

Ensuring that CBDCs are accepted by businesses from day one by connecting existing payment infrastructures will allow developers, fintech firms and financial institutions to build on top of CBDC networks, Gu noted.

According to Visa, the company’s CBDC payment module is designed to provide an on-ramp to existing payment networks, allowing the CBDC network to easily connect to financial service providers. Banks will be able to plug in this module and integrate their existing infrastructure, allowing them to issue CBDC-linked payment cards, for example.

“The user experience we envision is very similar to how payments are done today,” Gu explained, “If the CBDC network seamlessly integrates with your existing banking app, you can use your CBDC-linked Visa card at checkout.”

Visa is integrating its module with the ConsenSys Codefi CBDC sandbox, which is powered by ConsenSys Quorum. ConsenSys Quorum is an open-source version of the Ethereum protocol optimized for enterprise applications.

Last month, ConsenSys announced a partnership with another payment giant, MasterCardcooperatecooperate

, to address the challenge of scalable applications on the Quorum technology stack.