- The company unveiled this project as part of the LIFT Challenge
- It’s an initiative by the Central Bank of Brazil as part of its CBDC perspective analysis
- The Visa platform allows even tiny businesses to access blockchain solutions and a pool of investors
Not long ago, the Central Bank of Brazil announced finalists for the LIFT Challenge.
The goal was to present options for using the CBDC and how the virtual currency could interact with the rest of the economy.
This initiative is part of the regulator’s more global strategy to launch the Real Digital.. Nine companies were among the finalists, including Visa.
The payment giant, along with Microsoft, Agrotoken and Sinqia, presented the concept of a programmable financial platform.
Visa believes that this project has the potential to boost the development of small and medium-sized businesses through the implementation of blockchain solutions.
The key objective of the platform is to bring SMEs, particularly farmers, to the global marketplace.
That way, counterparties will have access to a large pool of investors, which will make it easier to find sources of financing.
In addition, the platform will also give entrepreneurs access to new tools. This is how Catherine Gu, global head of CBDC at Visa, sees it, for example:
“In this case, it will allow a farmer who grows soybeans, for example, to sell tokenized ‘coins’ around the world, contract in the Ethereum ecosystem, use different forms of money.”
Programmable aspects of CBDC are integral to this process. They will partially mitigate risks, automate settlements and simplify transactions.
The platform also makes it possible to tokenize traditional financial contracts, such as factoring.. In fact, we are talking about an infrastructure that will open up access to blockchain for any business.
The project uses Visa technology called UPC (Universal Payment Channel). This will ensure interoperability and interconnectivity of the digital real with other CBDCs.