Visa officially released the CBDC interoperability concept UPC to realize cross-blockchain CBDC transfer

Payment giant Visa has taken a step towards realizing the vision of a central bank digital currency (CBDC). Visa has developed a concept that shows how various CBDCs interoperate to make payments.

Visa officially released the CBDC interoperability concept UPC to realize cross-blockchain CBDC transfer

This concept, called “Universal Payment Channel” (UPC), outlines how to interconnect various blockchain networks to allow the transfer of CBDC. It shows how Visa will help exchange various CBDCs built on different blockchains in the future.

According to Cuy Sheffield, Visa’s head of cryptocurrency,

“This is a longer-term future thinking concept. Around this approach, Visa may help become a bridge between a digital currency on one blockchain and another digital currency on another blockchain. “

Visa stated that digital currencies including CBDC and stablecoins will play an important role in people’s financial lives in the future. For digital currencies to succeed, Visa believes that they must have an excellent consumer experience and broad merchant acceptance. The company said: “This means that payments and collections can be made regardless of currency, channel or format. This is where Visa’s UPC concept comes in.”

UPC is a conceptual agreement that facilitates digital currency payments between different parties. The white paper reads, “The UPC protocol facilitates payments through an entity called the UPC center (or server-we use these terms interchangeably), which acts as a gateway to receive payment requests from registered senders and route them to the registered receiver.”

Visa’s first smart contract

As part of the development of the concept of UPC, Visa also Ethernet Square of Ropsten test online deployed its first examples of intelligent contracts. The smart contract shows a payment channel that accepts Ethereum ( ETH ) and USDC stablecoins .

Visa said,

“UPC’s professional payment channels will be built outside the blockchain and will use smart contracts to communicate with various blockchain networks to safely and reliably provide high transaction throughput and increase overall speed.”

Sheffield stated that the company is increasing its knowledge and expertise, learning reliability, and writing smart contracts on Ethereum. He said that other blockchains will be explored in the future.

Ultimately, Visa’s goal is to allow UPC to transfer digital currency as a “blockchain network”.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/visa-officially-released-the-cbdc-interoperability-concept-upc-to-realize-cross-blockchain-cbdc-transfer/
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