Currently, Visa is working on a platform that will permit for interoperability between CBDCs and stablecoins. Also, this will help to revolutionize payments in digital tokens.
More so, this will be known as Dubbed the Universal Payments Channel, the platform enabling CBDCs to be transferred from one blockchain to another. Also, it allows stablecoins to operate on different blockchains platform.
Furthermore, This move has the capacity to revolutionize digital currencies and how they appear.
This means that the platform will work at the interface of CBDCs and stablecoins.
In a whitepaper published by the payment company, Visa says the Platform will function at the interface of CBDCs and stablecoins.
“With the innovation of distributed ledger technology (DLT), often known as blockchain technology, there has been…”
“significant growth of digital tokens in the form of cryptocurrencies, stablecoins, and central bank digital currencies…”
“The likelihood that transacting parties is on the same network decreases as the number…”
“of DLT networks platform increases, each with varying design characteristics…”
“Thus, it is crucial to facilitate payments that are universal across networks,..”
“scalable to massive loads, and highly available,” according to Visa.
Also, Visa is targeting to build a payment network on top of DLT networks. This is to become free to their limitations on interoperability, scalability, and availability faced by DLT payment solutions today.
Meanwhile, The company is asking a hub-and-spoke payment route, referred to here as Universal Payment Channels (UPC). Which, can be used to support digital token transfers of funds across different networks through payment channels.
Lastly, The system is coming as a solution platform from Visa. This is to the issue of interoperability of central bank-backed digital currencies in a world. Especially, where other major central banks are exploring the development of their own CBDCs platform.
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