ConsenSys, a blockchain technology supplier, and Visa’s Blockchain giant team collaborated in a unique way. The major goal of this alliance is to aid in the creation of CBDCs.
Currently, the bulk of central banks and commercial banks are attempting to implement blockchain technology in order to improve the payment system while also providing the financial system with a great potential to keep up with the evolving system.
Due to their inadequate experience in blockchain development, many of the banks are falling behind in the development of their steady coin or Central Bank Digital Currency (CBDCs).
Visa’s head of CBDCs, Catharine Gu, detailed the firm’s goal and stated that both partners are in conversations with several Central banks around the globe to give help via its team in the CBDCs deployment.
The two companies are said to be working on furthering the convergence of CBDCs with conventional tech payment systems.
That is, they will link the Visa payment system with CBDC-based channels, allowing users to quickly utilize CBDCs without encountering any problems or constraints.
As a result of the integration of the Visa payment system with ConsenSys’ blockchain technology, businesses will be able to simply implement blockchain technology.
Gu also mentioned that companies would need to comprehend the role of CBDCs in the payment system in the coming years and that it will be a difficult time for them to figure out how money can come in different ways at the same time.
The next two to three years, according to Gu, will be crucial in determining the role CBDC will perform in future payment systems.
Knowing how new kinds of money may survive with current payment methods and systems is a major challenge.
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