The global payments giant, Visa, introduced a project that aims to be a “universal adapter” of blockchains that can connect multiple cryptocurrencies, stablecoins, as well as central bank digital currencies (CBDC, for its acronym).
According to an official announcement made on Thursday, the investigation team from Visa is working on a “Universal Payment Channel” (UPC) initiative, a blockchain interoperability hub that connects multiple blockchain networks and enables the transfer of digital assets of various protocols and wallets.
“Imagine sharing the account with your friends when everyone at the table uses a different type of money; some use CBDC like the Swedish eKrona and others prefer a private stablecoin like USDC”, Visa wrote that and added that such an instrument “may well become a reality in the” not too distant future ” with the UPC project.
Developed by Visa’s research and product teams, the UPC project aims to set up dedicated payment channels between different blockchain networks, Connection of CBDC networks between countries as well as connection of CBDC with private stablecoin networks.
The Visa research team originally started working on the UPC concept as early as 2018 and developed an interoperability framework that should work independently of the underlying blockchain mechanisms.
“Ultimately, the UPC solution should serve as a network of blockchain networks and create added value for various forms of money movement, regardless of whether they come from the Visa network or beyond.” says the ad.
Visa, one of the largest payment companies in the world, took a giant leap in the cryptocurrency industry in 2020. Partnership with the blockchain company Circle to add support for the stablecoin USD Coin (USDC) on certain credit cards. Since then, the company reiterated its commitment to cryptocurrency payments and entry ramps for fiat money, with a special focus on stablecoin integrations.