Responsible for developing China’s overseas blockchain infrastructure platform BSN, Red Date Technology has launched a universal digital payment network (UDPN), which will connect CBDC and stablecoins. Cointelegraph reports.
GFT Technologies and DLA Piper also participate in the initiative.
“Just as SWIFT created the initial common standard for exchanging messages between financial institutions across settlement systems, UDPN will serve the same purpose for the next generation of CBDCs and stablecoins,” the project’s white paper.
Top-tier banks are participating in the proof of concept. Red Date Technology did not disclose their names.
At the Davos session where the company presented the project, representatives from Deutsche Bank, HSBC, Standard Chartered, The Bank of East Asia and Akbank were present.
The document states that UDPN will support “CBDCs and regulated stablecoins.” Their names are not disclosed. Unregulated cryptocurrencies will not be represented on the platform.
Earlier, Red Date Technology CEO and BSN co-founder He Yifan called unregulated cryptocurrencies “the largest Ponzi scheme in history.”
During January, participating banks will check the platform’s ability to conduct cross-border transfers and settlement transactions, as well as the implementation of Travel Rule.
In the other eight tests, partners will consider:
- issuance and circulation of CBDCs;
- issuance and circulation of stablecoins;
- use of UDPN as a payment gateway for e-commerce;
- gasless transactions using stablecoins on public blockchains;
- KYC-checks between institutions;
- tokenisation of digital assets;
- facilitating the conversion of foreign currencies into digital currencies.
On 15 January 2021, in China presented the BSN roadmap. It envisaged creating a global CBDC system that would “completely reshape the way payments are made and settled, providing a standardised method for transferring digital currency and a payment procedure for any information system.” To date, the document has been removed.
ForkLog explains how BSN works and why it matters for the Chinese government, in exclusive feature.
Read ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analytics.