{"id":1857,"date":"2022-12-22T09:16:50","date_gmt":"2022-12-22T09:16:50","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=1857"},"modified":"2023-04-04T05:20:18","modified_gmt":"2023-04-04T05:20:18","slug":"a-new-plan-from-visa-allows-crypto-wallets-to-pay-bills","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/a-new-plan-from-visa-allows-crypto-wallets-to-pay-bills","title":{"rendered":"A New Plan From Visa Allows Crypto Wallets to Pay Bills"},"content":{"rendered":"

Visa proposes blockchain technology to mimic automatic payments for bills commonplace in traditional banking.<\/p>\n

The largest payments company in the world, Visa, plans to automatically allow crypto users to pay their bills through their cryptocurrency wallets.<\/p>\n

The visa cryptocurrency thought leadership team published a blog post on Dec. 20 proposing a solution permitting providers to automatically transfer funds from users’ Ethereum-based crypto wallets without requesting approval at all times.<\/p>\n

Also Read:<\/strong> Cryptocurrency is now legal in Brazil<\/a><\/p>\n

Traditionally, banks allow users to set up automatic payments to pay off recurring bills using their bank accounts, such as Netflix subscriptions or monthly phone bills.<\/p>\n

According to Visa, self-custodial wallet owners cannot use an automated programmatic payment mechanism that pulls payments from their account regularly due to the engineering work.”<\/p>\n

Since the user only possesses the private keys in a self-custodial wallet, transactions must be manually approved as “smart contracts cannot initiate transactions on their own.”<\/p>\n

Using a new self-custodial wallet called a delegable account, Visa said it would be possible to automate recurring payments via cryptocurrency<\/a>.<\/p>\n

Ethereum’s founder, Vitalik Butering, proposed the idea in 2015, allowing smart contracts and Ethereum wallets to be combined.<\/p>\n

Through a delegable account or self-custody wallet based on AA, Visa says that users’ accounts will “function like smart contracts,” signifying that transactions can be scheduled without signing off to start each transaction.<\/p>\n

The post reads that a user can set up programmable payments for automatic transfers between self-custodial wallets without intervening each time.<\/p>\n

According to the firm, the proposal is part of its more comprehensive exploration of blockchain innovation and a way around Ethereum’s rigid transaction requirements.<\/p>\n

\n

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.<\/p>\n

\u2014 Catherine Gu (@catgu_) December 19, 2022<\/a><\/p><\/blockquote>\n

Users must trust exchanges or other third parties to handle their funds appropriately, although auto-payments can be implemented relatively easily via wallets hosted by them.<\/p>\n

FTX, Voyager, BlockFi, and Celsius, just to name a few, filed for bankruptcy this year, proving that this is a significant risk.<\/p>\n

Also Read:<\/strong> Crypto exchanges: Are they safe? Overnight, FTX collapsed, raising concerns<\/a><\/p>\n

Throughout the post, According to the author, AA has already been proposed as part of multiple Ethereum Improvement Proposals, but technical issues have prevented implementation. Security guarantees can only be met by making several protocol changes.<\/p>\n

According to Visa, the company has implemented its delegable accounts on the StarkNet layer 2 scaling solution, which supports AA, with success.<\/p>\n

Therefore, auto payments are not far behind, given that Visa’s delegable accounts were implemented in StarkNet’s “account model.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Visa proposes blockchain technology to mimic automatic payments for bills commonplace in traditional banking. The largest payments company in the world, Visa, plans to automatically allow crypto users to pay their bills through their cryptocurrency wallets. The visa cryptocurrency thought leadership team published a blog post on Dec. 20 proposing a solution permitting providers to […]<\/p>\n","protected":false},"author":5,"featured_media":1858,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-1857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news-updates"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=1857"}],"version-history":[{"count":3,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1857\/revisions"}],"predecessor-version":[{"id":2803,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1857\/revisions\/2803"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/1858"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=1857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=1857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=1857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}