Visa, the payment processing giant is expanding its crypto infrastructure with a new stablecoin interoperability focused layer-2 solutions that would allow Central Bank Digital Currencies (CBDCs) and private stablecoins to be transferred between different blockchain. The new platform would be called the “universal payments channel” (UPC). The development of the stablecoin layer 2 solutions can eradicate the issue of how different CBDCs can be handled on a single blockchain. The white paper read,
“the UPC technology can play an important role between private stablecoins and public CBDCs by providing permissioned access for whitelisted stablecoins to be interoperable with CBDCs.”
While explaining the utility of the UPC system, Visa wrote,
“Imagine splitting the check with your friends, when everyone at the table is using a different type of money — some using CBDC like Sweden’s krona, and others preferring a private stablecoin like USDC,” The firm said UPC project would make it possible to pay and issue different forms of stablecoin on a single platform shortly.
“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,”
The Visa team began its work on interoperability back in 2018 itself and when it formally got involved in 2020, the project picked steam.
Visa Building Base For Conquering Crypto
Visa over the past couple of years has shifted its focus majorly on the crypto market has dominated the traditional market for decades. Earlier in the second quarter, Visa had revealed that crypto-related transactions have exceeded over a billion-dollar in the first 5 months of 2021. They also revealed plans of building an infrastructure to make crypto the most used currency in the world.
Along with Visa, Mastercard, another payment processing giant is also actively working towards building new infrastructure for crypto expenditure and payments.