Payment behemoth, Visa, has set out protocols that will allow various Central Bank Digital Currencies (CBDCs) to interoperate for payments. The company has developed this concept to show how Visa can help several CBDCs transact, even if built on different blockchains.

The concept, Universal Payments Channel (UPC), outlines the technology behind connecting different blockchain networks to transfer CBDCs. The UPC will facilitate payments through a single entity called the UPC hub. The UPC hub is a server that acts as a gateway to receive requests for payment from registered sending parties to registered receiving parties.

Visa’s head of crypto, Cuy Sheffield, in an interview with The Block, commends the milestone. He says that this is a much longer-term future thinking that could bridge the gap between one digital currency on one blockchain and another digital currency in another blockchain.

Undoubtedly, CBDCs and stable coins will have an integral role in our lives in the near future. Visa believes in promoting a great customer experience and widespread merchant acceptance for a wholesome user experience. With the Universal Payments Channel, the ability to make payments seamlessly without barriers of channels, currency, or form factor is assured.

Visa’s first smart contract

In efforts to launch the Universal Payment Channel, Visa has also deployed its first-in-line smart contract on Ethereum’s Ropsten testnet. The smart contract shows Visa’s first trial on a payment channel that accepts both Ether and USDC.

Ultimately, Visa will use the concept of UPS to operate as a network of blockchain networks. The company is gathering its knowledge, expertise, and solidity learning to write smart contracts on Ethereum. Eventually, UPS-based payment channels will be established off the blockchain and entirely rely on smart contracts to communicate with several blockchain networks.

To get a discount whenever subscribing to Mycryptoparise membership package of your choice use BESTSIGNALS3% as your promo code.