Visa (NYSE:V) announced a second layer meant to build a universal hub that allows exchanging stablecoins and central bank digital currencies (CBDCs).
What Happened: According to a Thursday announcement, the new system aims to make different digital currencies interoperable by allowing for their real-time conversion. The payments behemoth describes its upcoming system as a "network of blockchain networks" that would work as a "universal adapter."
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The new Visa Universal Payment Channel would connect multiple digital assets — both governmental and decentralized — to enable the transfer of digital assets from different protocols and wallets. The company explained its vision:
“Imagine splitting the check with your friends, when everyone at the table is using a different type of money — some using CBDC like Sweden’s eKrona, and others preferring a private stablecoin like USDC.” USDC is Coinbase Global Inc.'s (NASDAQ:COIN) stablecoin.
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The announcement explains that the project aims to add "value to multiple forms of money movement, whether they originate on the Visa network, or beyond." The news follows late march reports that Visa became the first major payments network to settle transactions in USDC.
Image by Pete Linforth from Pixabay