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A SWIFT-style strategy for bank-issued and regulated integer currencies was launched by a steadfast with a tenure gathering China’s nationalist blockchain project.
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A Hong Kong-based blockchain institution has launched a integer payments strategy aimed astatine bridging the spread betwixt stablecoins and Central Bank Digital Currencies (CBDCs).
Red Date Technology, the blockchain infrastructure steadfast which is besides starring 1 of China’s blockchain efforts, launched the Universal Digital Payment Network (UDPN) connected Jan. 19 during the World Economic Forum (WEF) 2023 gathering successful Davos, Switzerland.
According to its whitepaper, the UDPN is simply a distributed ledger exertion (DLT) level that would service a akin intent to what the SWIFT web does for banks, but for stablecoins and CBDCs.
Tech engineering institution GFT Technologies and the integer plus instauration motor TOKO from instrumentality steadfast DLA Piper are besides contributors to UDPN development.
“Just arsenic the SWIFT web created the archetypal communal modular for messaging betwixt fiscal institutions crossed antithetic colony systems, the UDPN volition service the aforesaid intent for the emerging procreation of CBDCs and stablecoins.”According to a Jan. 19 property release, a "number of planetary tier 1 banks" are already progressive successful use-case impervious of concepts (POCs) to trial the web successful cross-border transfers and swaps.
The merchandise didn’t disclose what banks were taking portion successful the POCs, but Deutsche Bank, HSBC, Standard Chartered, The Bank of East Asia, and Akbank were represented connected a sheet astatine the UDPN motorboat successful Davos.
A high-level overview of the UDPN architecture depicting CBDC systems connecting to off-chain “transaction nodes” which successful crook link to the on-chain “validator nodes.” Image: UDPN whitepaper.The stablecoins to beryllium utilized successful the POC were besides undisclosed. The networks whitepaper does state, however, that it lone supports “CBDCs and regulated fiat-backed stablecoin currency systems arsenic outgo methods,” adding:
“No unregulated public-chain crypto-currencies, specified arsenic Bitcoin, volition beryllium accepted.”Eight different proof-of-concept tests are scheduled for the network, including issuing and circulating a CBDC and bank-issued stablecoin and utilizing UDPN arsenic a outgo gateway for e-commerce.
Related: Going cashless: Norway's integer currency task raises privateness questions
The UDPN has been successful improvement by Red Date for astir 2 years.
Before launching this integer payments system, the institution was known for its enactment connected Blockchain-based Service Network (BSN), China’s nationalist blockchain project.
In a now-deleted roadmap posted connected Jan. 15, 2021, the BSN said it planned to physique a planetary CBDC system that “will wholly alteration the existent outgo and circulation method, enabling a standardized integer currency transportation method and outgo process for immoderate accusation system.”
The latest whitepaper makes nary notation of Red Date's tenure successful steering China’s blockchain project, nor of the country’s ain CBDC efforts with its integer yuan.
Previously, successful June 2022 Red Date’s CEO, Yifan He, called cryptocurrencies the “biggest Ponzi strategy successful quality history.”
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