Visa, the credit and debit card processing giant, is expanding its crypto infrastructure with a new layer-2 solution focused on stablecoin interoperability. This solution will enable the transfer of Central Bank Digital Currencies (CBDCs) and private stablecoins between different blockchains.
The newly created platform would be known as the “universal payments channel” (UPC). The development of stablecoin layer 2 solutions will resolve the issue of how to manage multiple CBDCs on a single blockchain. According to the white paper,
“UPC technology can play a critical role in bridging the gap between private stablecoins and public CBDCs by allowing whitelisted stablecoins to interact with CBDCs via permissioned access.” Visa wrote, “When describing the utility of the UPC system,
“Consider splitting a check with your friends when everyone is using a different type of money — some using CBDC, such as Sweden’s krona, and others preferring a private stablecoin, such as USDC,” The company stated that the UPC project would soon enable the payment and issuance of multiple stablecoins on a single platform.
“Ultimately, the UPC solution aims to serve as a network of blockchain networks — adding value to multiple forms of money movement, whether they originate on the Visa network, or beyond,”
Visa began its work on interoperability in 2018, and when it became officially involved in 2020, the project gained momentum.
Visa Establishes a Foundation for Cryptocurrency Conquest
Visa has shifted its focus significantly in the last couple of years toward the crypto market, which has dominated the traditional market for decades. Visa previously disclosed in the second quarter that crypto-related transactions exceeded a billion dollars in the first five months of 2021. Additionally, they revealed plans to build an infrastructure that would make cryptocurrency the world’s most widely used currency.
Along with Visa and Mastercard, another payment processing behemoth is actively developing a new infrastructure for cryptocurrency spending and payments.
Also Read: Switz National Postal Service Will Issue The First Crypto Stamp On Polygon
Wallets