The main takeaway:
- Visa has developed a new concept that showcases interoperability between different block chains
- The so-called Universal Payments Channel (UPC) will allow the exchange of different digital currencies, stablecoins and other digital tokens between themselves, despite the underlying blockchain.
- Some of the most prominent companies in the financial services industry are betting on the long-term success of crytpo برنامج
An increasing number of countries are evaluating the possibility of transferring essential aspects of their monetary systems to distributed ledger technology, in the form of central bank digital currencies (CBDCs). Given that every country is developing central bank digital currencies using their own solutions, exchanging different digital currencies could become a major problem in the future.
Visa is taking a proactive approach and is already looking for a solution that will enable interoperability between the various blockchains on which CBDCs are built. The payment processing giant is not only looking to provide digital currency solutions to central banks, but also all kinds of other digital tokens and stablecoins found in various block chains.
Visa aims to build a “network of blockchain networks”
In a recently published white paper, Visa outlined a concept for a digital currency interoperability platform, which would enable “the transfer of funds across different networks through payment channels.” This concept is called the Universal Payments Channel (UPC). The white paper highlights the core problem and identifies the solution:
“As the number of DLT networks increases, each with different design characteristics, the likelihood of transacting parties being on the same network decreases. Thus, it is critical to facilitate public payments across networks, scalable for huge payloads, and highly available.”
Coy Sheffield, Head of Cryptocurrency at Visa, told The Block in an interview that Visa is looking far into the future and envisions the possibility of the company becoming a bridge between cryptocurrencies that are developed on multiple blockchains.
UPC is designed to take advantage of Ethereum’s smart contract functionality to facilitate payments between different crypto networks. Visa hopes that the UPC will become a “network of blockchain” and make the problem of transferring funds between different chains a thing of the past. Going forward, Visa is looking to facilitate smart communication functionality for other crypto platforms to extend the UPC utility.
The financial industry is deepening its ties to cryptocurrencies
Visa is far from the only financial services company that is eyeing the potential for increased participation in the blockchain sector. International financial firm Mastercard recently announced its acquisition of CipherTrace, a crypto-analytics company that specializes in tracking transactions made on the public ledger. Earlier in the year, Mastercard also announced that it would begin backing digital assets directly on its network, demonstrating the company’s long-term commitment to the growing industry.
PayPal decided to implement cryptocurrency functionality in its existing inventory of products and services in October of last year. Since then, the payments giant has expanded its crypto offering, by integrating cryptocurrencies into its PayPal wallet, and adding crypto functionality to its Venmo platform.
Over the course of the year, several investment banks began offering crypto services to their clients across a variety of different investment products. For example, JPMorgan began providing access to Grayscale’s Bitcoin and Ethereum funds in July. Shortly thereafter, Wells Fargo began offering crypto assets to qualified investors.
David is a cryptocurrency enthusiast and an expert in personal finance. He has authored several publications for different platforms. He loves to explore new things, and this is how he discovered blockchain in the first place.
