China’s national blockchain project, the Blockchain Service Network, plans to test integration with central bank digital currencies.
According to a January 15 blog postBSN wants to build a universal digital payment network, or UDPN, based on CBDCs from different countries as part of its 2021 roadmap. The beta version of UDPN, currently in the design phase, is expected to be launched in the second half of 2021 . The BSN plans to complete the development of UDPN within five years.
With the UDPN, BSN strives for a standardized digital currency transfer method and payment procedure. The new system aims to bring systems such as banking, insurance, enterprise resource planning and mobile apps together through APIs to provide a cost-friendly global payment solution.
In the blog post, BSN reaffirmed that China is serious about further developing CBDC, designating it as the biggest game-changer in the financial system:
“The CBDCs will completely change the current payment and circulation methods of traditional currencies, consistently build the resilience of payment systems and significantly increase the global circulation of commodities and settlement between currencies.”
The UDPN is one of the four goals on the roadmap of the BSN for 2021. The other three are the further expansion of the BSN network, the promotion of the private BSN platform and the broadening of the BSN ecosystem. The BSN said it will continue to invest heavily in blockchain research and development in 2021 to accelerate the mass adoption of blockchain technology worldwide.
As previously reported by Cointelegraph, the BSN is Chinese supported by the government blockchain initiative that was first tested at the end of 2019. The project was initially positioned as a technical hub to help small to medium businesses build and deploy blockchain apps on permitted blockchains. The program was officially launched in April 2020 for worldwide commercial use.