Visa reveals stablecoin ambitions

Team Luno
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1 minute read

  • 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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Team Luno

On our way to the moon, we write about all things crypto. And don’t forget we’re humans too. Our blog conveys the views of Luno and the many unique opinions and characters within our team. We’ll never provide you with financial advice, and we urge you to conduct your own research before purchasing or trading any cryptocurrencies. It’s a brave new world out there, and the market can be volatile at times, so never trade with funds you can’t afford to lose. Want to let us know how much you love our blog? Tweet us @LunoGlobal.

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