At the World Economic Forum in Davos, Red Date Technology announced the Universal Digital Payments Network (UDPN) blockchain platform, which aims to enable the global circulation of stablecoins and central bank digital currencies (CBDC). The project will offer transactions and other operations with various digital currencies subject to regulation.
According to the company, UDPN will serve the same purpose in the world of CBDCs and stablecoins as SWIFT does in the world of conventional payments between financial institutions – the latter system being used around the world. Stablecoins, in turn, are often viewed as a convenient way to circumvent the restrictions imposed by SWIFT.
According to Red Date, world-class banks will be accepted in tests from January to June, thanks to which it will be possible to test the possibility of integrating digital currencies into everyday business, the banking sector and payment scenarios. Although the company did not reveal the names of the banks, the premiere was attended by representatives from Deutsche Bank, the Hong Kong and Shanghai Banking Corporation (HSBC), Standard Chartered and the Bank of East Asia.
One of the UDPN proof-of-concept tests is said to be related to the CBDC. It examines how successfully banks and other structures can issue and participate in the circulation of digital currencies based on blockchain tokens. Since there are still very few CBDCs around the world, the developers emphasize that these particular features are more “experimental” than others. At the same time, the CBDC of China itself, the digital yuan eCNY, is not mentioned in the materials, despite being perhaps the most widely used central bank digital currency in the economy.
China has long taken steps to eliminate SWIFT dependency. In recent years, Beijing has actively supported blockchain technologies, although the digital yuan does not use them. Nevertheless, the Blockchain-based Service Network (BSN), launched in 2020 by Red Date, China Mobile, UnionPay and the State Information Center, is intended for the widespread adoption of blockchain technologies in enterprise IT systems without the use of cryptocurrencies. Previously, Red Dot officials criticized cryptocurrencies, calling them the largest fraudulent “Ponzi scheme” in human history. The company operates a BSN-Distributed Digital Certificate (BSN-DDC) blockchain-based service in China, allowing local businesses to handle NFTs without any connection to crypto assets.
Last September, BSN launched the public blockchain project Spartan Network, whose main customers are companies outside of mainland China. In Hong Kong alone, more than 10 companies have become clients, including well-known conglomerates Emperor Group, HSBC, Lan Kwai Fong Group and Maxim’s Group.