VISA AND ETHEREUM WANT TO LAUNCH AN AUTOMATED CRYPTO PAYMENT SYSTEM

VISA AND ETHEREUM WANT TO LAUNCH AN AUTOMATED CRYPTO PAYMENT SYSTEM

Direct exchanges between users via their wallet would be the core business of this new payment system.

Something could well happen in the coming months with the Ethereum blockchain, which has just formed a partnership with Visa, the American bank card specialist.

In the end, this is also what the generalisation of crypto technology is all about: the challenge is undoubtedly the modernisation of the entire international payment infrastructure. And in this respect, Visa has just joined forces with the Ethereum blockchain to work on a new automated payment system. Direct exchanges between users via their wallet, their personal crypto wallet, would be the core activity of this new payment system.

An outlet for the old Ethereum project
Until now, automatic and programmable transfers were only possible via wallets hosted by large platforms. However, after the FTX scandal and the debates about Binance, Visa has realised that the future of crypto technology, especially when it comes to payment infrastructures, is above all the wallet, the holding of its own.

In this respect, Visa offers an outlet for an old project of the Ethereum blockchain, namely account abstraction. This means that the crypto wallet itself becomes a smart contract capable of carrying out automatic transactions. Thus, customer/merchant and peer-to-peer exchanges, for example, should cut out a whole bunch of intermediaries.

"We see automatic payments as a key functionality that is missing from existing blockchain infrastructures. (...) Account abstraction will provide non-hosted wallets with a recurring automatic payments capability," Visa said.

This may even be the credit card of the future, and Visa seems to be making a big splash with this announcement, in the face of a competition that is still working on more traditional projects that depend on the current financial infrastructure.