Visa Reveals Proposal For Auto-Payments On Ethereum!
Visa Reveals Proposal For Auto-Payments On Ethereum!
Giant global payment company Visa has recently hinted at their growing interest in joining the crypto industry.
ETH Auto-Payments
Through a new proposal that they released this Monday, Visa explores at ways that it could help in developing the Ethereum ecosystem, specifically through creating a new automatic payment system.
At @Visa , we want to serve as a trusted bridge between the crypto ecosystem and our global network. Excited to share some update today, here is the 🧵 pic.twitter.com/OK1sWIaxY3
— Catherine Gu (@catgu_) December 19, 2022
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Visa explains that if they were able to collaborate with the Ethereum mainnet one day, they would possibly be able to create scheduled auto-payments sent from self-custodial crypto wallets. A system that is not yet available because of the threat of breached of security that auto-payments pose on wallets.
The team explains that the solution is through something called an “account abstraction”, which would allow Ethereum user accounts to “function like smart contracts.”
“This application could allow a user to setup a programmable payment instruction that can push funds automatically from one self-custodial wallet account to another at recurring intervals, without requiring the user’s active participation each time,” the post reads.
AA has many potential use cases, especially on how the user experience on a digital wallet may be substantially enhanced with more flexibility embedded into user account to function more like smart contract.
— Catherine Gu (@catgu_) December 19, 2022
“If one of the major use cases of blockchain is for payments, then the basic requirement is that the blockchain has to function just as good as today, if not better.” Visa’s head of central bank digital currencies and protocols, Catherine Gu wrote.
Visa’s Interest In Crypto
This new proposal has been the latest hint at Visa’s growing interest in the crypto industry despite the current bear market and massive collapse of one of the biggest crypto exchanges just earlier last month.
Back in October, Visa filed for a trademark application for a crypto wallet and exchange platform, hinting at their plans to dive even deeper into the industry.
“It’s very important to figure out what’s the signal and what’s the noise,” Catherine Gu said. “We’re taking a much longer-term perspective on this technology. It may have real utility, and that’s why we’re here: to invest more, to do research.”
Related: Visa Files a Trademark Application for a Crypto Wallet & Exchange Platform
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