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Basics about digital currencies

Why digital currencies matter to you and your company?

As interest and demand for digital currencies from consumers and businesses grows, and governments explore the potential issuance of central bank digital currencies, many financial institutions are looking for ways to leverage the interest and provide new products and solutions for their customers.

What is digital currency?

Digital currency is a digital version of cash that is controlled by a private cryptographic key. With digital currencies, ownership is determined by control of a private cryptographic key. A payment is authorized by proving you have access to that key. Digital currencies fundamentally represent a new form factor of money and evolution in the core properties of how money works.

Types of digital currencies

Digital Currencies

1. Cryptocurrency
2. Stablecoin
3. CBDC

Cryptocurrency 

• 1980s; 2023 (Bitcoin)

• Attempt at creating a currency that did not rely on central banks

• High volatility, limited acceptance and interoperatbility

• Predominantly held as assets that are not used as a form of payment in a ubiquitous way

Examples

• Bitcoin
• Ether

Stablecoin

• Two types of CBDCs Retail CBDC

• Mid 2010s

• Developed to mitigate the volatility and therefore limited use of crypto

• Issued by private entities and can be backed by assets, I.e., pegged to fiat currencies or gold, or non-collateralized

Examples

• USDC
• Diem

Central Bank Digital Currency

• Late 2010’s

• Basically cash but in a digital form, able to be receives and spent directly

• New form of money issued by central bank directly to its citizens, exists exclusively in digital form

Examples

• eCNY China
• e-Krona Sweden

Two types of CBDCs Retail CBDC

• Retail CBDC

• For transactions between consumers and business

• Wholesale CBDC

• Interbank transfers and settlements

Why digital currencies matter to you and your company?

In the next few years, many expect growing demand from consumers and businesses for crypto-enabled financial services. The space is moving incredibly quickly, and it
can be challenging to keep up with the pace of innovation. The lines between crypto,fintech, and banking will continue to blur.



Digital currencies represent fundamental innovations that financial institutions across Latin America and the Caribbean will integrate into their core products to power new consumer experiences and payment flows.

Visa is here to help you

Contact your Visa account executive to learn how Visa is uniquely positioned to help you make digital currencies more safe, useful and applicable for payments.

About Visa.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.
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