Visa Unveils Proposed Interoperability Platform for Stablecoins, CBDCs

Payments behemoth Visa has unveiled a proposed platform enabling interoperability between central bank digital currencies (CBDCs) and other stablecoins.

The “universal payments channel” (UPC) aims to allow the cryptocurrencies to be transferred between different blockchain networks.In a white paper, Visa said “the UPC technology can play an important role between private stablecoins and public CBDCs by providing permissioned access for whitelisted stablecoins to be interoperable with CBDCs.” The UPC protocol will allow payments through an entity known as the “UPC Hub”, acting as a trusted gateway to read the state of two ledgers, checking the eligibility of every payment.With almost every major economy in the world exploring the development of a CBDC, questions have been asked about how different currencies could interoperate and eyes have turned to companies like Visa to provide such a solution.

Read more: BIS Signals Central Banks to Start Work on CBDCs

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