Global payments behemoth Visa says it’s working on a protocol that can allow the sending of digital currencies across blockchains.
In a new blog post, Visa announces a new analysis paper that explores an idea they call a “Universal Payment Channel” (UPC).
Visa describes the UPC as a hub that interconnects multiple blockchain networks and permits for the safe switch of digital currencies.
“Think of it as a ‘universal adapter’ among blockchains, permitting central banks, companies, and shoppers to seamlessly trade worth, irrespective of the shape issue of the foreign money.”
Visa highlights the need for a UPC due to a massive variety of digital currencies and the necessity for a common network.
“Because the variety of digital currency networks will increase – every with distinctive design characteristics – the chance that consumers, companies, and retailers are transacting on the same network and using the identical type of money decreases.
We consider that for CBDCs (central bank digital currencies) to achieve success, they will need to have two important elements: great client experience and widespread merchant acceptance. It means the ability to make and receive payments, regardless of currency, channel, or kind of issue. And that’s the place Visa’s UPC concept comes in.”
Visa has beforehand embraced the digital asset house with their current buy of a Cryptopunk, a popular non-fungible token (NFT) product.
According to the payments giant, NFTs shall be an outstanding aspect of a number of facets of the worldwide economic system.
“We predict NFTs will play an essential function in the way forward for retail, social media, entertainment, and commerce. To help our clients and companions take part, we want a firsthand understanding of the infrastructure necessities for a worldwide brand to purchase, store, and leverage an NFT.”