- International payments giant On Monday, Visa published a study outlining how it will eventually integrate with the Ethereum network to process automatic payments.
- The paper explains how Ethereum users may prepare automatic payments from wallets supporting self-custodial cryptocurrency.
- According to Visa, the auto payments scheme would be possible thanks to a new self-custodial wallet called “delegable accounts.”
Global payments behemoth Visa released a report on Monday explaining how the company can eventually interact with the Ethereum network on automatic payments, signaling its increased, ongoing interest in cryptocurrencies.
The paper describes how Ethereum users might plan auto-payments sent from self-custodial cryptocurrency wallets with support from Visa. An internal corporate hackathon was the basis for the publication.
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
This feature is not currently accessible on the Ethereum mainnet, but it would be made possible by the “Account Abstraction” proposal, a well-known Ethereum feature.
According to Visa, a brand-new self-custodial wallet known as “delegable accounts” may make the auto payments plan feasible. Based on the idea of Account Abstraction, this kind of wallet might make it easier to create new kinds of multi-owner and public accounts.
Visa’s suggestion for auto payments fits into the company’s larger plan for blockchain innovation that makes use of Ethereum’s strength. The world’s largest payments company has so far conducted continual research into fresh strategies for getting around Ethereum transactions’ strict hardcoded constraints.
Although the introduction of crypto auto-payments may not have a significant influence on the banking and payments environment, it is another indication that Visa intends to participate actively in the cryptocurrency market, which it views as potentially important for the future.
Head of CBDC and Protocols at Visa, Catherine Gu, stated that they want to be able to actively participate in the technological advancements taking place in the cryptocurrency ecosystem. The easiest way to achieve that is to truly immerse yourself in Web3 infrastructures and blockchain protocols, which are areas she believes will be crucial for payments.
Gu’s group is currently aggressively researching what additional blockchain technologies are poised to revolutionize the world of payments—and how soon their adoption could be implemented. Gu believes that day isn’t approaching too quickly.