Visa 's research team is looking into creating a universal payment channel to support global transfers of digital currencies.- The payment channel would connect different blockchains, the company said in a blog post on Thursday.
- Central banks around the world are picking up their efforts to develop their own digital currencies.
Visa, the world's largest payment processing company, said on $4 it was looking into creating what it called a universal payment channel (UPC) to support central bank digital currency and stablecoin transfers across the globe.
The channel would act as a hub to connect multiple blockchains to enable secure transfers of digital currencies, the report said.
Many central banks including those of the
"While digital currencies may not be a part of your daily financial life today, it's likely that they will play an important role in the future," Visa said.
"The UPC solution aims to serve as a network of blockchain(s)- adding value to multiple forms of money movement, whether they originate on the Visa network, or beyond," the company said.
Visa said it had considered using the channel for transfers of
The UPC will be able to process billions of transactions with reduced fees, Visa said.
It would connect different blockchain networks by creating dedicated payment channels between them. This could mean connecting
"How about sending $500 in USDC to a friend in London, and having those funds automatically converted to digital British pounds before they arrive in her CBDC wallet. Now imagine all this happening in real-time, across multiple networks, and compatible with multiple digital wallets," the report by Visa's research team said.
Visa has not wasted any time engaging with the growing