Visa, in partnership with Agrotoken, Microsoft, and Sinqia, was one of the finalists in the LIFT Challenge aimed at exploring blockchain-based use cases for Brazil’s central bank-issued digital currency, the Real Digital (CBDC).
The collaboration resulted in the development of a programmable finance platform for Small and Medium Enterprises (SMEs), particularly farmers, designed to provide them with greater access to global capital markets, improve operational processes, and uncover new growth opportunities. The prototype is designed to provide local farmers with more timely and greater access to a global pool of investors for financing, allowing the SMEs to get the best price discovery for their goods.
Visa’s prototype platform aims to improve existing money movement operations and alleviate pain points caused by inaccessibility to traditional services. The platform brings existing financial processes and assets on-chain, allowing farmers to tokenize traditional financing contracts. Additionally, the platform leverages a Visa technology called Universal Payments Channel (UPC), which can interconnect between the Real Digital (CBDC) and other CBDCs, stablecoins, or tokenized deposits, to help ensure future interoperability between digital currencies across different markets and networks.
9 May 2023