CBDC One of the Most Important Trends for Money Future: Visa’s Crypto Head

The US-based global payments technology company, Visa, is betting on the central bank digital currencies (CBDC) as one of the most trends for the future of money and payment in the upcoming decade.

“As governments evaluate CBDC, the path that they decide to take will have major implications for privacy, monetary sovereignty, geopolitics, and financial inclusion, as well as the global adoption of crypto dollars and Bitcoin,” Cuy Sheffield, Head of Crypto at Visa, tweeted last Saturday. 

Sheffield is responsible for the projects of cryptocurrency for the credit card megacorporation.

Sheffield’s comments came after the Bank of Japan (BoJ) announced the launching of the testing of a digital Japanese Yen to experiment with the feasibility of CBDC. The BoJ will test if it can achieve the two required conditions of universal access and flexibility.

“I would argue that central bank digital currency (CBDC) is one of the most important trends for the future of money and payments over the next decade. Regardless of anyone’s personal views of whether it’s good or bad, the reality is that global interest in it is not going away,” Sheffield added. 

Bet on CBDC

Sheffield is one of the main supporters of the CBDC. Earlier in May, he said that the central banks “are not series enough to offer solutions for digital currencies for consumers.”

Visa has a main interest in digital currencies, cryptocurrencies and the Blockchain. Earlier in May, the global company filed a cryptocurrency system patent.

Meanwhile, Coinbase, the San Francisco-based cryptocurrency exchange platform, announced last February that it became “the first pure-play crypto company to be approved as a Visa principal member.”

Such a move will allow it to “issue a Visa debit card that allows customers to spend their crypto as easily as the money in their bank account,” Coinbase pointed out.

Two months later, Crytpo startup Fold joined Visa’s Fintech Fast-Track program to offer cards that earn debit card with bitcoin cashback rewards.

Five CBDCs on way 

Not only Japan is experimenting with digital Yen. The Bank of Canada is also preparing to design its own CBDC, the digital Canadian dollar, after years of research, according to CoinDesk.

The bank revealed his move in a job post in which he required a person to work on “a program of major social significance to design a contingent system for a CBDC which can be thought of as a banknote, but in digital form,” the bank post read, CoinDesk reported.

The bank is planning to work on this project over three years, before issuing a pilot version of its currency. 

Meanwhile, China is about to launch its digital currency, the Digital Yuan, but it has not announced yet the launching date, according to CoinDesk.

The United States is also working on issuing its digital dollar, according to Dcforecasts website.

In the meantime, Italy is eager to experiment with a digital euro backed by the European Central Bank (ECB). 

The Italian Banking Association (ABI), which includes more than 700 Italian banking institutions is ready to experiment with the digital euro, CoinDesk reported on 22 June 2020. 

Italy has joined a growing group of European countries that have an interest in digital currencies. Earlier this year, France said that its central bank is aspiring to cooperate with local partners to lead experiments with the CBDCThe Netherlands shortly followed it.

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Fatma Lotfi 11 Articles
Egyptian bilingual journalist with six years of experience in print and digital journalism, focusing on various beats, including tech, cryptocurrencies, and finance.