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 (CBDCs). The project will offer transactions and other operations with various regulated digital currencies.
According to the company, UDPN will serve the same purpose in the world of CBDCs and stablecoins as SWIFT in the world of conventional payments between financial institutions – the latter system being used worldwide. Stablecoins, in turn, are often seen as a convenient way to circumvent restrictions imposed by SWIFT.
According to Red Date, world-class banks will be accepted into the tests from January to June, through which it will be possible to test the possibility of integrating digital currencies into daily business, banking and payment scenarios. Although the company did not reveal the names of the banks, the premiere featured representatives from Deutsche Bank, Hong Kong and Shanghai Banking Corporation (HSBC), Standard Chartered and Bank of East Asia.
One of the UDPN’s proof-of-concept tests would 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 in the world, the developers point out that these particular features are more “experimental” than others. At the same time, China’s CBDC itself, the digital yuan eCNY, is not mentioned in the documents, although it is perhaps the most widely used central bank digital currency in the economy.
China has long taken steps to eliminate reliance on SWIFT. 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 biggest 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 manage NFTs without any connection to crypto assets.
Last September, BSN launched the public blockchain project Spartan Network, whose main clients are companies outside 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.