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Visa Hints at an Ethereum Collaboration and Promises to “Actively Contribute” to Crypto Development

Global payments behemoth Visa released a report on Monday explaining how the company can eventually interact with the Ethereum network on automatic payments, signalling its increased, ongoing interest in cryptocurrencies.

Although the introduction of crypto auto-payments may not have a significant influence on the banking and payments environment, it is another indication that Visa intends to participate actively in the cryptocurrency market, which it views as potentially crucial to the long-term future of payments.

The paper describes how Ethereum users might plan auto-payments sent from self-custodial cryptocurrency wallets with support from Visa. The document was inspired by an internal corporate hackathon that was held earlier this year. This capacity is not yet possible on the Ethereum mainnet, but it would be made possible by a well-liked Ethereum proposal called “Account Abstraction,” which would let Ethereum user accounts perform pre-scheduled execution functions and operate like smart contracts.

According to Catherine Gu, Head of CBDC and Protocols at Visa, “we want to have the chance to actively contribute to technical improvements happening in the crypto ecosystem.” The best way to accomplish that, in my opinion, is to learn by doing, specifically by diving deeper into Web3 infrastructures and blockchain protocols.

Gu thinks that day doesn’t seem to be coming up too soon.

Gu’s group is currently aggressively researching what additional blockchain technologies are poised to revolutionise the world of payments—and how soon their adoption could be implemented. The group was originally established to look into the possibility of digital currencies supported by global governments.

Gu remarked, “This technology is relatively new right now, but there might be something there later on.” There is still a lot of study to be done on core payment-related issues like security and scalability.

Gu’s group is currently aggressively researching what additional blockchain technologies are poised to revolutionise the world of payments—and how soon their adoption could be implemented. The group was originally established to look into the possibility of digital currencies supported by global governments.

Gu thinks that day doesn’t seem to be coming up too soon. Gu remarked, “This technology is relatively new right now, but there might be something there later on.” There is still a lot of study to be done on core payment-related issues like security and scalability.

Scalability, or the capacity to maintain network security while allowing for inexpensive and quick transactions on a large scale, has long been a coveted but unattainable aim for blockchain networks like Ethereum. This issue will be addressed in many of the Ethereum network’s upcoming releases. For instance, proto-danksharding is a prototype of a system that, in the future, may drastically minimise the quantity of data that must be securely evaluated in order to handle massive amounts of Ethereum transactions. It is anticipated to debut later in the year. Gu stated that most blockchain networks “from a payments aspect are not yet scalable enough to conduct transactions at a really high speed in a secure and trustworthy fashion.”

It’s unlikely that significant networks like Ethereum will be substantially integrated by big companies like Visa until they can widely scale. But the payments business is certain that such technological vistas are within reach because it has been in constant contact with Ethereum’s core developers. That optimism is a sharp contrast to the pessimism of current public sentiment about cryptocurrencies, which has been driven in recent weeks by the ongoing collapse of the crypto exchange FTX and the disgraced founder Sam Bankman-Fried.

Understanding the difference between the signal and the noise is crucial, according to Gu. “We are looking at this technology from a much longer-term view. We are here to increase our investments and do research since it might actually be useful. The company submitted trademark applications in October, indicating that it was considering developing a crypto wallet and a metaverse product. A month later, Visa ended its collaboration with FTX, which had given users of the cryptocurrency exchange access to debit cards bearing the Visa logo.

The following month, Paxos and Mastercard, a competing payments company, introduced cryptocurrency trading for banks.

News Summary:

  • Visa Hints at an Ethereum Collaboration and Promises to “Actively Contribute” to Crypto Development
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