Visa Crypto Chief Bets on CBDCs For Future of Global Digital Payments

07. Jul 2020 Posted by Akolkar B on News

With the blockchain-based payments system setting the stage for the next FinTech revolution, central banking institutions all around the world are increasingly focusing on the idea of having a central bank digital currency (CBDC).

Visa’s head of crypto - Cuy Sheffield - has predicted that a CBDC will be one of the most-important trends over the next decade as the global payments industry undergoes a major overhaul.

In a tweet he said: “as governments evaluate CBDC, the path they decide to take will have major implications for privacy, monetary sovereignty, geopolitics, and financial inclusion, as well as global adoption of crypto dollars and Bitcoin.”

He further added: “I'd 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.”

Recently, Sheffield has been quite vocal about the idea of having a CBDC and notes that central banks aren’t interested in consumer-focused digital currencies. Earlier in May 2020, Visa also filed for a patent that allows central bank to replace cash with blockchain-based digital currencies.

Several Asian central banks as well as European central banks have been experimenting with CBDCs testing the economic and financial viabilities of such a project. In Asia, China has also accelerated its CBDC developments and other democratic nations like Japan and South Korea are also working on one.

In another news, Former U.S. Treasury Secretary Lawrence Summers has showered praises on stablecoins. Speaking at “The Money Movement” podcast, Summers noted that he sees more innovation coming in the blockchain space.

He also spoke about the future of digital currencies and how stablecoins can play a crucial role in it. “I’m sure there will be a variety of kinds of innovation, but I’d be kind of surprised and – you know, I’ve been surprised many times before – if we got to some kind of global digital currency … in my lifetime,” he said. “I could be wrong, I think … We will see a ton of innovation that will work through stablecoins, and that will permit cross-border exchange with more with more ease,” added Summers.