Blockchain project supported by China suggests Swift alternative for stable coins and CBDCs-Finance
Blockchain project supported by China suggests Swift alternative for stable coins and CBDCs-Finance
The company that develops China's blockchain network wants to create a system for international accounting with stable coins and state-sponsored digital currencies. It is planned to set up a platform that facilitates the use of these two fiat-based digital assets in foreign trade.
The company behind China's Blockchain-Push aims to make stablecoins and state.
RED DATE Technology based in Hong Kong, the developer of China's state-supported blockchain-based service Network (BSN), has started a new project to implement both stable coins and digital central bank currencies ( cbdcs ) for cross-border payments.
The initiative was announced this week at the World Economic Forum (WEF) in Davos, Switzerland, the South China Morning Post reported. The future platform with the name Universal Digital Payments Network (UDPN) is intended to ensure the interoperability between the two types of token.
The goal is to enable companies from different countries to "carry out transactions and billing in various regulated digital currencies," explains the UDPN-White paper. The company supported by the government further explained its intentions and wrote:
As the Swift network has created the original common standard for the transmission of news between financial institutions across various settlement systems, the UDPN will meet the same purpose for the emerging generation of CBDCs and stablecoins.
Swift, or Society for Worldwide Interbank Financial Telecommunication, is the most widespread system for interbank transfers worldwide. But it was seen as a means of pressure for the West, which, for example, cut off Russian banks from the network in Ukraine after Moscow Invasion.
Both Russia and China have sought greater Swift autonomy. The Russian government has been developing its system for the transfer of financial news (SPFS) since 2014, while Beijing introduced the Cross-Border Interbank Payment System (CIPS).
In addition, the People’s Bank of China published a digital Yuan, which is currently the most widespread CBDC with studies expand in several regions. With the Russian Federation, a digital rubles are created in the emergence of Acceleration Sanctions.
red date said that a number of global animal 1 banks will take part in a number of proof-of-concept studies that will take place between January and June. They were not named, but representatives of Deutsche Bank, HSBC, Standard Chartered and the Bank of East Asia were present at the UDPN event.
The company started BSN together with the state telecommunications giant China Mobile, the bank card clearing service Unionpay and the State Information Center, a government tank. His main purpose is to facilitate the implementation of blockchain in corporate IT systems.
Do you believe that the new Chinese platform for StableCoin and CBDC processing will find support from the major banking institutions? Share your expectations in the comment area below.
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