Visa unveils plan for a universal cryptocurrency payment channel for businesses

Visa Inc.’s research and product teams announced Thursday that they are developing a new concept of interconnecting multiple blockchain networks for the secure transfer of digital money they call a “universal payment channel.” .

The new project would create payment channels to allow anyone to pay for products and exchange equivalent value, regardless of the cryptocurrency they use.

“Imagine sharing the check with your friends, when everyone at the table is using a different type of money – some using a central bank digital currency, or CDBC, like Swedish krona eKrona, and others preferring a stablecoin private like USDC, ”the company wrote. in a report.

According to Visa, the objective of the project is to act as a hub between the different blockchains and to become a “universal adapter” and thus allow the secure exchange of value for central banks and companies regardless of the type of currency. .

As more central banks begin to explore their own cryptocurrencies, including issuing CDBCs, this means that traders and financial institutions will have to deal with more and more types of digital currencies every day. times customers sit down to buy items. As in the example above, Visa’s solution would elegantly solve the problem of a group dividing the check with two or more different digital currencies at once.

Visa believes that making digital currencies more adoptable and adaptable will require a good customer experience and widespread acceptance by merchants.

To achieve this, Visa’s research team began developing the UPC in 2018, as trends began to develop in the cryptocurrency industry. At the same time, the company started reaching out to many traders and other crypto companies to spend and convert digital currencies.

In July, Visa had partnered with more than 50 crypto companies to support crypto conversion on its own network, allowing direct conversion of crypto to its own cards. According to the company, at the time, it had already processed nearly $ 1 billion on its crypto cards around the world in the first half of 2021.

With UPC, Visa hopes to provide greater accessibility to more banks, merchants and businesses – whether transactions originate from its network or not – enabling easier value exchange for distinct types of digital currencies.

Image: Visa

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