As a seasoned researcher with a keen eye for technological advancements, I find Visa’s latest move to be an intriguing step forward in bridging the gap between traditional banking and blockchain technology. Having spent years observing the evolving digital landscape, I can attest that this is not just another buzzword in the tech world but a significant stride towards mainstream adoption of blockchain.
Visa unveiled a fresh system for banks to facilitate the issuance and control of traditional currency-linked tokens using blockchain technology. BBVA is scheduled to test this platform by the year 2025.
Financial institution-friendly blockchain platform launched by global payment leader Visa, designed for seamless integration of tokens backed by real currency, with the goal of merging conventional banking and cutting-edge blockchain technology.
As a crypto investor, I recently learned that Visa announced in an October 3 press release the development of their Visa Tokenized Asset Platform. This platform will empower financial institutions worldwide to create, retire, and transfer digital tokens backed by traditional currencies like stablecoins. Excitingly, BBVA, a prominent Spanish banking group, is planning to test this technology on the public Ethereum blockchain starting in 2025.
Visa explains that the VTAP solution connects with current banking systems through APIs, giving banks a chance to test out tokenization scenarios in a secure testing environment. Moreover, the platform’s flexibility allows financial institutions to automate various tasks, such as managing intricate lines of credit using smart contracts and employing fiat-backed tokens to disburse payments once payment conditions are fulfilled.
We’re looking forward to using our knowledge about tokenization to assist banks in adopting blockchain technology within their workflow.
Vanessa Colella, global head of innovation and digital partnerships, Visa
According to a recent announcement, BBVA has been experimenting with their platform throughout the year 2024, primarily focusing on token issuance, transfer, and redemption using testnet blockchains. It’s not specified when exactly they will initiate the trial run of this platform. Visa mentions that their platform is built to facilitate compatibility across various blockchain networks, but it remains undisclosed which other networks are being considered for support.
Visa raises concerns over stablecoin adoption
In early May, Visa presented findings disputing the belief that stablecoin transactions were nearing the transaction levels of conventional payment systems. Cuy Sheffield, who leads cryptocurrency at Visa, pointed out that much of the activity in stablecoins is actually automated bot transactions, rather than genuine user activity.
The findings, however, sparked debate, with some industry participants questioning Visa’s methodology. While Visa remains cautious about stablecoin adoption, others argue that stablecoins are still in a nascent stage and should not be dismissed based on current data.
Read More
Sorry. No data so far.
2024-10-03 16:22