Payments giant Visa announced this Thursday (30) that its research team has developed a system that seeks to interconnect different blockchains to facilitate the payment and receipt of amounts in cryptocurrencies, stablecoins and digital currencies of Central Banks (CBDC).
With the growth of the cryptoactives market, especially stablecoins (cryptocurrencies that have a parity with fiat currencies, mainly the dollar) and CBDCs, the trend is that more and more people start using digital money when they are going to consume some good or product.
However, with each of these digital currencies working on a different blockchain, with a network completely separate from the other, the question arises of how to put into practice the ease that these assets want to bring, allowing people to use, for example, the digital real in an establishment in Europe, which in turn will receive in local currency, in digital form or not.
To do this, Visa reported the creation of what they are calling the Universal Payment Channel (UPS), which intends to act as a hub, interconnecting multiple blockchains and enabling the secure transfer of digital currencies.
“Think of it as a ‘universal adapter’ between blockchains, allowing central banks, businesses and consumers to exchange value seamlessly, regardless of the currency format,” the company says in a statement.
According to Visa, more than promoting interoperability, the UPC also has implications for transaction speeds in digital currencies. Remember that currently many blockchains are able to process far fewer transactions than payment giants, which reach tens of thousands per second.
“UPC’s specialized payment channels would be established outside the blockchain and leverage smart contracts to communicate back to the various blockchain networks, delivering secure and reliable high throughput of transactions and improving overall speeds,” he explains. the company.
In addition, Visa believes it is this type of interoperability solution between blockchains that will help make CBDCs more attractive to consumers and businesses around the world.