The global payment giant Visa has unveiled a project that aims to become a “global blockchain converter” that can connect various cryptocurrencies and stack coins, as well as the central bank’s digital currencies (CBDCs).
According to an official announcement on Thursday, the Visa research team is working on the Universal Payment Channel (UPC) initiative, an interoperability hub for blockchain that connects multiple blockchain networks and allows digital assets to be transferred from a variety of protocols and wallets.
“Imagine sharing a check with your friends when everyone at the table spends different types of money – some use a central bank digital currency […] like the Swedish eKrona, while others prefer a special stablecoin like the USDC,” Visa wrote. and adds that such a tool “can become a reality” in the “not too distant future” with the UPC project.
The UPC project, developed by Visa’s research and product team, is designed to create dedicated payment channels between different blockchain networks, CBDC connections between countries and connect CBDCs to private stablecoin networks.
The Visa research team first started working on the UPC concept back in 2018 to develop an interoperability framework that works independently of the underlying blockchain mechanisms.
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The announcement states: “Ultimately, the UPC solution is intended to act as a blockchain network and add value to the myriad forms of cash flow, whether they come from or from the Visa network.”
Visa, one of the largest payment companies in the world, took a big step in the crypto industry in 2020 by partnering with blockchain company Circle to support USDC stablecoin on certain credit cards. Since then, the company has reaffirmed its commitment to cryptocurrency and fiat payments, focusing on the integration of stablecoin.