Blockchain and the era of broadband
In the early days of the Internet, critics dismissed it as a project with no real future. The idea that people would be able to work remotely, book trips, meet people from all over the world, and shop online seemed far-fetched. However, as we all know, the Internet has become an integral part of our daily lives.
Similar to the early days of the Internet, blockchain technology is facing skepticism and criticism. Critics argue that blockchains are slow, difficult to use, and expensive. Yet, these same criticisms were once directed at the Internet itself. Just as the Internet has evolved and matured, so too will blockchain technology.
Visa, a leader in payments technology, recognizes the potential of blockchain and is actively exploring its possibilities. They foresee a future where the Visa network incorporates multiple currencies, settlement circuits, stablecoin networks, and even central bank digital currencies (CBDCs). They see themselves as a bridge, connecting customers regardless of their preferred currency or settlement network.
One specific area of focus for Visa is efficient global settlement and compensation. They have already conducted a settlement pilot project on Ethereum using the USDC stablecoin. This project provided issuers and fintech acquirers with a modern and convenient option for making and receiving payments. Visa envisions a future where traditional currencies and legacy settlement circuits coexist with tokenized fiat on real-time global blockchain networks.
Another area of exploration for Visa is cross-border disbursements powered by blockchain. Cross-border money movement has always been a challenge, and Visa has made efforts to simplify processes and expand payment options. They envision blockchain networks becoming part of their Visa Direct platform, enabling customers to transfer funds through stablecoin networks to next-generation wallets.
Visa also recognizes the need to help clients understand and leverage blockchain technology. They are conducting extensive research and experimenting with different ways to reduce complexity for end users. They want to ensure that they can provide the best services to their customers and partners in this rapidly evolving landscape.
While the role of blockchain networks in the future is uncertain, Visa believes that financial institutions should have a strategy in place. Just as early critics of the Internet were proven wrong, it is important for institutions to stay ahead of the curve and be prepared for the changing technological landscape.
In conclusion, blockchain technology is experiencing a similar trajectory to that of the early Internet. Skepticism and criticism are commonplace, but just as the Internet evolved and transformed society, so too will blockchain. Visa is at the forefront of exploring the potential of blockchain and envisioning a future where it plays a significant role in global payments and financial transactions.
