$ 19,690.45
$ 1,327.76
$ 1.00
$ 0.429177
$ 0.461249
$ 1.00
$ 0.00031

Visa’s New System to Allow Crypto Payments

Visa's New System to Allow Crypto payments

Visa is trying to work on crypto’s challenges with interoperability.

Bitcoin (BTC) entered the market in 2009, expected to operate as an intermediary-free digital payment system. Nowadays, Bitcoin is no longer the only cryptocurrency, joined from more than 12,000 other types which cover all industries, starting from supply chains to payments in digital form.

Now, where do Visa’s payment methods come into play? Wherever Visa is slightly involved, it dives right into it.

Cross-chain Payment Method Proposal

New plans for a Universal Payment Channel released from Visa this week, a channel that acts as the center and connects an abundance of blockchain networks. In addition, this Universal Payment Channel will give the opportunity to safely transfer digital currencies.

The channel is still not completed, however, it is promised to be the solution towards many crypto interoperability problems, as stated by the research group of Visa.

What does that mean? Currently, a big number of blockchain ledgers cannot transact with each other because they operate in isolation. For instance, if you were to go to an Ethereum based network and pay with Bitcoin, you might be faced with difficulties. This would be just like not being able to transfer money from one bank to the other.

In such cases, interoperability would come to the rescue. If we leave interoperability out of the question, crypto digital assets will never get to their full potential. Therefore, Visa, among many other organizations is seeking solutions to this.

DOT, AVAX, ATOM, MATIC are among the cryptocurrencies that work like this. These aforementioned names have already come up with solutions, however, it is still a question whether only one of them or more than one will be the key provider of interoperability.

Focus on CBDCs

It is interesting to note that this new proposal by Visa is equally focused on CBDCs and cryptocurrencies. CBDCs, short for Central Bank Digital Currencies, are also called govcoins, and as the name tells they are digital currencies backed by the government.

Using blockchain technology to create virtual currencies seems like an attractive option for a number of governments. The Federal Reserve is exploring the good sides that a digital dollar would bring, whereas China has been testing a digital yuan for some time now.

Visa’s involvement with the issue makes it known that they are expecting a future where these govcoins will have a significant role. Crypto traders should pay close attention to this. While govcoins will have the same good sides of current digital currencies – inexpensive and fast transactions – they are free from the risk of coin failure.

Anyway, govcoins are not completely without problems either. They part ways with cryptocurrencies in one key element, decentralization, as they do not have it. Decentralization means that there is no need for a third party like the government or the bank. In addition, there are privacy and safety challenges regarding govcoins.

Govcoins might be a possible threat only to crypto values that offer merely payment solutions or they might negatively impact the stablecoin industry. However, as there is a great number of different cryptocurrencies in the market, it is highly unlikely for govcoins to threaten the entire industry. 

Whats Should Crypto Traders Do

Visa always tried to make a place in the world of cryptocurrencies, from establishing partnerships with crypto exchanges to provide Visa debit cards that give crypto rewards, to offering a crypto-only payment. This latest project with Universal Payment Channel reinforces the idea that Visa wants to be part of the crypto industry, be it by working with govcoins or the other cryptocurrencies.

Govcoins seem to soon enough be the norm, and leaving payment only coins like LTC and Bitcoin Cash behind, as seen by the research. Something else that is expected is for Visa to move towards interoperability coins.

While most crypto investors only focus on competition from other crypto values, they should keep in mind that businesses use blockchain technology as well.

 Also read: Visa Working on Interoperability Concept for Central Bank Crypto Payments

Also read:

Related News

Kim Kardashian Charged By SEC For Unlawfully Touting Crypto Security

The Securities and Exchange Commission has charged Kim Kardashian for promoting a crypto asset security sold and offered by EthereumMax on social media, resulting in a scam. This is without reporting the compensation she got for a promotion. In exchange for dropping the accusations, paying around $1.26 million in fines, forfeiture, and interest, going along with the investigations, the star of Keeping Up With The Kardashians, Kim, agreed to settle

Read More »
The action came after Binance's expansion in several nations in 2022, such as Dubai, France, Spain, and Italy, as the platform aims to expand its operations and boost global cryptocurrency usage.

Binance to Offer its Services to New Zealand

As per a blog post published on September 30, the biggest crypto exchange by trading volume, Binance, is now reportedly registered in New Zealand and opened a regional office there called Binance New Zealand as part of its effort for worldwide expansion. On September 10, Binance filed as a financial service provider with the Ministry of Business, Innovation, and Employment in New Zealand. This allowed the business to provide a

Read More »
With the new exchange-traded fund (ETF), European users will have access to the blockchain market. A metaverse-focused ETF may also be in the works, according to numerous sources.

BlackRock Introduces New ETF Targeting European Clients

Blackrock, the biggest asset manager in the world, has revealed the introduction of a fresh ETF. With the new exchange-traded fund (ETF), European users will have access to the blockchain market. A metaverse-focused ETF may also be in the works, according to numerous sources. The iShares Blockchain Technology UCITS ETF, a new Blackrock ETF, was introduced on September 27. Blackrock provided more information about the ETF, claiming that 75% of

Read More »

My Coins

$ 19,690.453.2%
$ 1,327.763.76%
$ 1.000.06%
usd-coinUSD Coin
$ 1.000.21%

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy


Contact Us

For any question conatct us through:

[email protected]

Disclaimer: All information and materials on this website are for educational purposes only. does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: [email protected]