Global payments behemoth Visa says it is working on a protocol that can enable the sending of digital currencies across multiple blockchains.
In a new blog post, Visa announces a new research paper that explores a concept they call a “Universal Payment Channel” (UPC).
Visa describes the UPC as a hub that interconnects multiple blockchain networks and allows for the secure transfer of digital currencies.
“Think of it as a ‘universal adapter’ among blockchains, allowing central banks, businesses, and consumers to seamlessly exchange value, no matter the form factor of the currency.”
Visa highlights the need for a UPC due to the large number of digital currencies and the necessity for a common network.
“As the number of digital currency networks increases – each with unique design characteristics – the likelihood that consumers, businesses, and merchants are transacting on the same network and utilizing the same type of money decreases.
We believe that for CBDCs (central bank digital currencies) to be successful, they must have two essential ingredients: a great consumer experience and widespread merchant acceptance. It means the ability to make and receive payments, regardless of currency, channel, or form factor. And that’s where Visa’s UPC concept comes in.”
Visa has previously embraced the digital asset space with their recent purchase of a Cryptopunk, a popular non-fungible token (NFT) product.
According to the payments giant, NFTs will be a prominent aspect of multiple facets of the global economy.
“We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce. To help our clients and partners participate, we need a firsthand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT.”