Visa, a company that allows people to make payments using credit cards and other electronic methods, has announced a new project in Brazil related to digital money. This new project uses a technology called blockchain, which helps keep digital transactions secure. The project also involves working with the central bank of Brazil to create a digital currency that can be used by people in the country.
The bank is planning to release its new digital currency later this year and is optimistic about its launch.
The bank has said that its digital currency is being created with the goal of supporting small businesses in the area.
Visa worked together with Agrotoken, Microsoft, and Sinqia to create its new digital currency.
The companies’ new product is a financial platform meant for small and medium-sized businesses.
Visa mentioned that its new product would be particularly useful for small farmers and businesses in the agriculture industry.
The financial platform includes a solution called Universal Payment Channel (UPC), which is an innovation from Visa that helps different systems work together.
Using UPC, the company says that businesses and traders can connect different types of digital currencies, like the Brazilian CBDC, stablecoins, or tokenized deposits.
The four companies said that this feature would allow people in the agriculture industry to use the digital Brazilian currency in different places and systems.
The companies stated that their new financial platform would help small and medium-sized businesses to access funding more easily and securely.
The platform will also help to reduce the problems that can be caused by not having access to traditional financial services.
- Will Visa’s digital currency project that uses blockchain technology be successful in Brazil?
Catherine Gu, who leads Visa’s CBDC projects, explained that the new system could allow a soybean producer in Brazil to sell their product on a global platform by creating a secure digital contract using a type of blockchain called Ethereum. This contract could be bought using different types of digital currencies that can work together.
The creators of the platform say that it makes it possible to use traditional financial systems and assets on the blockchain technology.
They say that this change will let farmers create digital versions of traditional contracts.
Visa said that it worked with Agrotoken, a company with experience in creating digital versions of agricultural products, to make this possible.
BREAKING: 🇧🇷 Brazil's president Lula supports creating new currency for trade between BRICS nations, and ditching the US dollar – Reuters pic.twitter.com/5jB4pM6wFG
— Radar🚨 (@RadarHits) April 26, 2023
Visa said that this partnership helped them turn existing legal documents from Brazil into digital tokens that can be traded on the blockchain.
Visa also said that it created a system for auctions called “sealed-bid” that works using the blockchain technology.
Visa explained that its new auction system uses a type of blockchain technology called smart contracts.
According to Visa, this new auction system will enable a group of investors from around the world to take part in funding small and medium-sized businesses.
