The American multinational financial services corporation (VISA), announces that it would work for making the interoperability for CBDC and Stablecoins easy. It’s working is based on the UPC concept, which means Universal Payments Channel. This channel would be a hub which would interconnect various blockchain networks, thereby permitting safe transfer of digital currencies. Where interoperability is defined as ability of various computerised systems to instantly connect and exchange information with one another.
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UPCs Ability
CBDCs could be effectively transferred from one blockchain to another, after they are been enabled by UPCs, thereby also allowing Stablecoins for making their operations work on different blockchains. To this, VISA in its whitepaper on September 30 had published regarding its wide role of acting as an interface between Stablecoins and CBDCs. This move could certainly transform payments in digital tokens.
Visa’s Viewpoint
The company had focused on the requirement of having an interface in wake of ongoing digital revolution and its requirement are mentioned in detail below:
1. The speedy flow in the blockchain networks with different features and characteristics are cause of growth in digital assets in form of Stablecoins, cryptocurrencies and CBDCs. The rise in blockchain networks, lowers the possibility of the transacting parties to be in similar networks.
2. Requirement of universal, scalable and at wide accessible payment systems is the need of the hour in such a case.
3. A better consumer experience and merchant acceptance at large is the requirement of CBDCs and also the capability of making and receiving the payments although having currency being able to meet the penetration level in financial system.
4. The Visa’s interface platform UPC aids in addressing such sorts of concerns.
Advantages And Functions Of Visa Enabled UPC
The functions and advantages of Visa enabled UPC were mentioned in whitepaper and those are:
1. Amongst different blockchains, UPC is going to build payment channels involving CBDCs among different countries or with Stablecoins network which is private.
2. Focused on working as a network of blockchain networks.
3. In addition to this, it could also have ability of adding latest and reliable blockchain to the network of networks thereby building new payment channels inside the UPC hub.
4. The interoperability discussed above could be delivered by UPC in case it is cross chain and would make CBDCs useful and appealing to entrepreneurs.
5. The specialised payment channels of UPC are going to deliver payments with higher transaction throughput in a safer way.
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