Global payments giant Visa has unveiled a project that aims to become a “global converter” for blocks that can link multiple cryptocurrencies, a pool of coins and central bank digital currencies (CBDCs).
According to an official announcement Thursday, the Visa research group is working on the Universal Payment Channel (UPC) initiative, a blockchain interoperability center that connects multiple blockchain networks and allows digital assets to be transferred from a variety of protocols and wallets.
“Imagine you are sharing a check with your friends when everyone at the table is spending different types of money – some use CBDCs like Sweden’s eKrona, others prefer private stablecoins like USDC,” Visa wrote, adding that this tool “may be a reality” in “Near future” with the UPC project.
The UPC project, developed by Visa Research and Products Group, is designed to create dedicated payment channels between different blockchain networks, link CBDCs between countries, and connect CBDCs to private stablecoin networks.
The Visa research group initially started working on the UPC concept back in 2018 and has developed a framework for interoperability that will operate independently of the underlying blockchain mechanisms.
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“Ultimately, the UPC solution aims to serve as a network of blockchain networks, adding value to multiple forms of money flow, whether originating from or off the Visa network,” the announcement says.
Visa, one of the world’s largest payment companies, took a huge step in the crypto industry in 2020 and partnered with blockchain company Circle to support USDC stackecoin on certain credit cards. Since then, the company has reaffirmed its commitment to cryptocurrencies and cash ramps, with a focus on stablecoin integration.