Visa was active in getting involved with Crypto and this week is no exception. Reports have surfaced that payment facilitator and financial services firm Ethereum has put its first smart deal on TestNet.
This is not the first time that they have embraced the growing acceptance of visas in their activities.
Visa Universal Payment Channel
The company has shown clear investment in becoming the leader in payment processing through the central bank through crypto. Visa’s first smart contract deployment was a payment channel that accepted both Ether and USDC. It is a conceptual protocol developed by payment processors that will enable inter-operative functionality within the central bank’s digital currencies (CBDCs), called “Universal Payment Channels” or UPCs.
The timing is appropriate based on global discussions around the CBDC. Just this week, Nigeria sought to launch a CBDC as the first country in Africa, the Bank of England released members of its CBDC forum, and the New Zealand Central Bank sought public opinion on CBDCs. Of course, the biggest story in the speculation is that China’s recent bitcoin ban is linked to rumors of a search for the country’s ‘digital yuan’. By all accounts, it is safe to say that cryptocurrencies and centralized currencies have been at the forefront of the Treasury Department in most countries lately.
Visa UPC is being built to support different CBDCs across different blockchains. Cui Sheffield, the company’s crypto chief, described the initiative as a “long-term future thinking” that Visa could be a bridge between one digital currency in one blockchain and another digital currency in another blockchain.
Ethereum testnet is host to Visa's first take at a Universal Payment Channel protocol. | Source: ETH-USD on TradingView.com
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It’s all part of the plan
This week’s development visa is far from the first step in digging their heels into crypto. Last month, the company bought a cryptocurrency and expressed a positive outlook around NFTs. And by mid-2021, the company shared that it spent বছরে 1 billion a year on crypto-linked Visa cards. Through everything, Visa has also shown a clear favor in Ethereum, and is now using the chain again with the Universal Payment Channel. The company’s apparent involvement with Ethereum could be fruitful in buying more companies for the blockchain.
In the UPC research and insights report published by Visa, the company shows a clear desire to be a “network of blockchain networks” for global transactions. Digital Asset Tracker 21 shares Ethereum as “the most important single innovation in the cryptocurrency and blockchain industries since the creation of Bitcoin in 2009.” Should Visa UPCs be made on the backbone of Etherium? There are good reasons to be optimistic.
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