Today Visa unveiled a paper that outlines a blockchain interoperability approach for digital money. The aim is to enable someone that owns some central bank digital currency (CBDC) to seamlessly make a cross border payment where the recipient receives a different CBDC. The currencies could be either CBDCs or stablecoins, although it suggests that stablecoins would need permissioned access.
A key aim is to enable blockchains or account-based ledgers with different technologies to talk to each other.
Visa’s solution is a hub and spoke Universal Payment Channel (UPC) that processes transactions outside the blockchains to address scalability and the potentially high costs and delays involved in blockchain payments.
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