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A Hong Kong-based blockchain firm has launched a digital funds system geared toward bridging the hole between stablecoins and central financial institution digital currencies (CBDCs).
Crimson Date Know-how, the blockchain infrastructure agency that can also be main one in all China’s blockchain efforts, launched the Common Digital Fee Community (UDPN) on Jan. 19 in the course of the World Financial Discussion board (WEF) 2023 assembly in Davos, Switzerland.
Tech engineering firm GFT Applied sciences and the digital asset creation engine TOKO from legislation agency DLA Piper are additionally contributors to UDPN improvement.
According to its white paper, the UDPN is a distributed ledger expertise (DLT) platform that might serve an analogous objective to what the SWIFT community does for banks, aside from stablecoins and CBDCs.
“Simply because the SWIFT community created the unique widespread commonplace for messaging between monetary establishments throughout completely different settlement programs, the UDPN will serve the identical objective for the rising era of CBDCs and stablecoins.”
In line with a Jan. 19 press launch, a “variety of world tier 1 banks” are already concerned in use case proof of ideas (POCs) to check the community in cross-border transfers and swaps.
The discharge didn’t disclose which banks have been participating within the POCs, however Deutsche Financial institution, HSBC, Normal Chartered, The Financial institution of East Asiaand Akbank have been represented on a panel on the UDPN launch in Davos.
The stablecoins for use within the POC have been additionally undisclosed. The networks whitepaper does state, nevertheless, that it solely helps “CBDCs and controlled fiat-backed stablecoin forex programs as fee strategies,” including:
“No unregulated public-chain crypto-currencies, comparable to Bitcoin, shall be accepted.”
Eight different proof-of-concept assessments are scheduled for the community, together with issuing and circulating a CBDC and bank-issued stablecoin and utilizing UDPN as a fee gateway for e-commerce.
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The UDPN has been in improvement by Crimson Date for practically two years,
Earlier than launching this digital funds system, the corporate was recognized for its work on Blockchain-based Service Community (BSN), China’s nationwide blockchain undertaking.
In a now-deleted roadmap posted on Jan. 15, 2021, the BSN mentioned it deliberate to construct a worldwide CBDC system that “will fully change the present fee and circulation methodology, enabling a standardized digital forex switch methodology and fee process for any info system.”
The newest white paper makes no point out of Crimson Date’s involvement in steering China’s blockchain undertaking, nor of the nation’s personal CBDC efforts with its digital yuan.
A spokesperson for the undertaking instructed Cointelegraph there’s “no connection by any means between BSN and UDPN” because the latter is “managed and ruled in a decentralized method.”
In June, Crimson Date’s CEO, Yifan He, referred to as cryptocurrencies the “greatest Ponzi scheme in human historical past.”
Replace (Jan. 23, 6:40 AM UTC): Added remark from UDPN spokesperson.
