Visa's recent CBDC project that aims to improve the situation of Brazilian farmers is a timely response to the clear need of encompassing a digital financial framework through the use of blockchain technology in order to provide more efficient economic services. By connecting farmers with global investors, the project allows them to receive funding without sky-high interest rates and bureaucratic processes. Visa takes a different approach compared to other services given the implementation of its technology Universal Payment Channel, which is intended to provide interoperability between different digital assets. This project is also supported by Microsoft in order to meet the KYC requirements.
In 2022, Visa was selected among 8 other companies to explore real-world use cases for the digital real, which requires them to delve into diverse and innovative projects that display the potential of blockchain technology. On the other hand, the People’s Bank of China has integrated an offline payment functionality for its CBDC pilot, including a red envelope feature that is associated with Chinese New Year traditions and reflected in the rising number of users.
Overall, this implies that central banks are increasingly looking for ways to make their CBDCs more attractive to the public by including elements that are useful and familiar to the users. As several countries like the U.S. and Japan look to launch their own CBDCs, it is interesting to see the different approach each institution takes in order to make them successful.
Robert Ward
- 2023-05-06
Visa's Project Leverages Blockchain For Brazilian Farmers
Visa’s new CBDC project aims to improve the situation of Brazilian farmers by connecting them to global investors and providing funding without high interest rates. Leveraging blockchain technology and Universal Payment Channel, they will be integrated with digital assets. Supported by Microsoft, this project explores innovative use cases and aims to make CBDCs more attractive to the public.
![CandleFocus Visa-Blockchain-CBDC-BrazilianFarmers-DigitalAssets](https://images.candlefocus.com/Visas-Project-Leverages-Blockchain-For-Brazilian-Farmers.jpg)