Visa’s Blockchain Based Innovations Can Take Small Businesses to the Next Level
Visa (NYSE: V), a world leader in digital payments, was one of nine finalists tasked with exploring innovative blockchain-based use cases for the Real Digital (Brazil’s central bank-issued digital currency, or CBDC) as part of the most recent LIFT Challenge. The company partnered with Agrotoken, Microsoft, and Sinqia to develop its submission.
After months of collaborative work between each company’s world-class researchers and engineers, Visa and its team are excited to share the results of their LIFT Challenge participation — a programmable finance platform for Small and Medium Enterprises (SMEs), particularly farmers, that is designed to enable greater access to global capital markets, facilitate interoperability between currencies, improve operational processes, and uncover new growth opportunities.
Small Businesses Drive Global Economies
SMEs are often beholden to localized market structure in negotiating favorable contracts. For example, factoring is a well-known financing method today where a farmer can sell their future receivable at a discount to receive money today to purchase supplies and pay wages. This process routinely leads to a sizable percentage loss of the farmer’s receivable to the entity providing financing.
Visa’s prototype is designed to provide local farmers with more timely and greater access to a global pool of investors for financing, allowing the SMEs to get the best price discovery for their goods. By empowering SMEs with additional options to finance their businesses in a secure and frictionless way, Visa’s prototype platform aims to improve existing money movement operations and alleviate pain points caused by inaccessibility to traditional services.
“Small businesses are essential contributors to our local economies, such as in Brazil where they employ over half the population and contribute to nearly a third of the country’s GDP. At Visa, we are committed to help them grow, exploring new technologies that will empower them to more easily maintain and expand their business operations,” said Catherine Gu, Global Head of CBDC for Visa.
“Brazil is one of the world’s leading markets for innovation,” she continues. “By contributing our expertise, scale, network, and cutting-edge technologies in this market, we are able to help advance real-world applications of digital currencies — in this case making it possible for a soybean farmer to create and globally auction a tokenized contract on a permissioned version of the Ethereum blockchain, while utilizing different forms of money and interoperating between them.”
How Visa can Enable Programmable Finance in CBDCs
With many of the world’s central banks exploring the value of a Central Bank Digital Currency (CBDC), Visa and its partners have demonstrated how CBDCs can enable new cross-border payments programmatically, as well as provide international investment resources to SMEs. The programmable aspects of digital currencies, which allow delivery and payment of assets and currencies to be automatically settled only when certain conditions are met, open the door for more efficient capital usage and reduced counterparty risks, while leveraging the security, stability, and safety of a central bank liability via CBDC as a reliable settlement currency.
The prototype platform brings existing financial processes and assets on-chain, allowing farmers to tokenize traditional financing contracts. To achieve this, Agrotoken brought its agriculture-based tokenization expertise from their existing solutions in Brazil and Latin America and Visa delivered a tokenization process for turning existing Brazilian legal documents into an on-chain tradeable NFT.
“Agrotoken has a mission to democratize agribusiness by making transactions with soy and corn more accessible. To achieve this, we have chosen solid partners, such as Visa, to join us in our journey towards this goal," said Anderson Nacaxe, Director of Agrotoken in Brazil.
Combined with tokenization, Visa implemented a new onchain sealed-bid auction mechanism through smart contracts to enable a global pool of investors on the blockchain to participate in the financing process, achieving competitive price discovery. Additionally, the platform leverages a Visa technology called Universal Payments Channel (UPC) , which can interconnect between the Real Digital (CBDC) and other CBDCs, stablecoins or tokenized deposits, to help ensure future interoperability between digital currencies across different markets and networks.
This year’s LIFT Challenge Real Digital sought innovative tech research projects within the financial sector to assess use cases for the Digital Brazilian Real. Visa developed this Proof of Concept as part of the company’s ongoing efforts to work with industry partners, lead exploratory work and apply emerging technologies to creatively solve for well-known real world problems.
Visa works with Central Banks around the world and other players of the payment ecosystem to identify compelling CBDC opportunities that can be scaled and executed through secure, innovative, convenient, and reliable technologies, with the goal of developing innovative digital payment solutions that can help individuals, businesses and governments participate in the digital economy and ultimately thrive.
To learn more about Visa’s work with CBDC, visit our Digital Currency Innovation Hub. In addition, we have co-published an in-depth final report on the LIFT platform with the Brazilian Central Bank available here.
About Visa Inc.
Visa (NYSE: V) is a world leader in digital payments, facilitating payments transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable, and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at http://visa.com/
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230508005774/en/
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
PPG opens Color Creation Lab with Chery Automobile in China1.6.2023 16:01:00 EEST | Press release
PPG (NYSE:PPG) today announced the opening of a Color Creation Lab in collaboration with automaker Chery Automobile Co., Ltd. At the facility, located in Wuhu, China, PPG color stylists and Chery designers will create new colors tailored to specific vehicle designs, from initial color recommendations to final materials for application in Chery’s manufacturing plants. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230601005119/en/ Representatives from PPG and Chery Automobile celebrate the opening of a Color Creation Lab in Wuhu, China. (Photo: PPG) “As the leading single-source coatings supplier for automotive manufacturing, PPG is excited to partner with Chery, a company that prioritizes technological innovation and sustainable production,” said Thomas Li, PPG vice president Asia Pacific, Automotive Coatings. “We will leverage our global color leadership to predict future trends, while advancing paint technology for the nex
HEINZ® Unveils First Global Creative Brand Platform in Over 150 Years1.6.2023 16:00:00 EEST | Press release
Today, HEINZ announces “It Has to be HEINZ,” a new global platform marking the first time in its 150-year history where the brand is unified under one creative strategy. The campaign pays homage to the brand by celebrating the irrational love people have for HEINZ – from real fans’ personal love affairs with the brand, to the love and care its products are made with. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230601005186/en/ HEINZ announces its first new global platform in its 150-year history “It Has to be HEINZ,” inspired by real-life stories of fans’ undeniable love of HEINZ (Graphic: Business Wire) Anchored by Kraft HEINZ’s largest media investment to date, the global creative platform demonstrates the unmatched love generations of people all over the world have for HEINZ – from Ketchup to Beanz and everything in-between(z). The fan stories featured in the creative – such as HEINZ tattoos, carrying condiment packets
PPG opens $30-million battery pack application center in China1.6.2023 16:00:00 EEST | Press release
PPG (NYSE: PPG) today announced that it has inaugurated a battery pack application center (BPAC) in Tianjin, China. The $30-million facility features a full range of capabilities to test the application of PPG coatings technologies, materials and systems for electric vehicle (EV) battery packs, allowing customers to accelerate the development of new EV technologies. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230601005106/en/ PPG has inaugurated a $30-million facility in Tianjin, China to test coatings technologies, materials and systems for electric vehicle battery packs. (Photo: Business Wire) “The new application center is an important milestone in our effort to support our customers in China in the EV battery market,” said Vincent Robin, PPG global vice president, Automotive Coatings. “The new facility will be an important way for customers to validate our customizable coatings solutions that help them reduce applicat
AlertEnterprise Appoints Greg Tomb to Board of Directors1.6.2023 16:00:00 EEST | Press release
AlertEnterprise, the only provider of AI-powered solutions for securing and automating total workforce management, is pleased to announce the appointment of Greg Tomb, a seasoned technology executive, to its Board of Directors. Tomb brings a wealth of experience in leading market-leading software and cloud organizations, including his tenure at SAP, President of SAP SuccessFactors, executive roles at Google Cloud and Zoom. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230601005338/en/ Greg Tomb, former SAP® SuccessFactors® President and Google Cloud and Zoom executive joins AlertEnterprise's board of directors. (Photo: Business Wire) "We are delighted to welcome Greg Tomb to our esteemed Board of Directors. His extensive experience in driving innovation and growth in the HR, Security, and Enterprise Software market will be invaluable as we continue to deliver solutions that produce incredible workforce experiences, boosts p
Digi International Introduces Bold New Features to SkyCloud for Enhanced Industrial Monitoring and Control Solutions1.6.2023 16:00:00 EEST | Press release
Digi International, (NASDAQ: DGII, www.digi.com), a leading global provider of Internet of Things (IoT) connectivity products and services, today announced the release of the latest version of Digi SkyCloud, a state-of-the-art solution for monitoring, analyzing and controlling field data. The 23.5 update of SkyCloud introduces a range of new features, giving users effortless systems integrations with remote monitoring and control solutions — delivering flexibility and optimal efficiency, making it ideal for industrial, agricultural and environmental industries. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230601005484/en/ Digi International Introduces Bold New Features to SkyCloud for Enhanced Industrial Monitoring and Control Solutions (Graphic: Business Wire) Company administrators can now better manage their deployment and user base. At the forefront of this release are the introduction of REST APIs and the ability to d
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom