Visa reveals stablecoin ambitions
- Payments giant Visa has announced outlines for a “universal payments channel” to facilitate transactions between various stablecoins and central bank digital currencies (CBDCs). CBDCs are digital versions of fiat currency backed by a central bank.
- The idea is to create a payment experience that allows users to pay for something in a foreign country with a debit or credit card that draws funds from their home country by using digital currencies.
- While the “universal” payments channel revolves around digital currencies, its infrastructure will be built on legacy software and not blockchain.
- Visa’s product lead for CBDCs, Catherine Gu compared the new payments channel to the “Layer 2” solutions being developed on Bitcoin and Ethereum — software that is helping scale transaction processes on the respective networks.
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