Payments heavyweight Visa has revealed a concept for interconnecting multiple blockchain networks together. In a published blog post, Global CBDC Product Lead at Visa, Catherine Gu, said the new concept called "Universal Payment Channel" (UPC) allows central banks and businesses to exchange value with no dependence on the form factor of the currency.
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The UPC hub is expected to connect different blockchain networks by creating specific payment channels between them. With the unite payment architecture multiple forms of money movement will get an additional layer of value, Gu says. What is more important, Visa wants to combine both the CBDC space and the stablecoin market so that they could co-exist together. While no deadline on final product has been set, Visa has already published a sneak peak of source code to see how the new system might work in the future.
Visa's interest in CBDCs and stablecoins is nothing new. Earlier this year, the payments giant announced plans for using the USDC stablecoin for settlement transactions on the Ethereum blockchain. As part of this initiative, Visa launched a pilot program in collaboration with Crypto.com and Anchorage.
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