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).
Pink Date Expertise, the blockchain infrastructure agency that can also be main considered one of China’s blockchain efforts, launched the Common Digital Fee Community (UDPN) on Jan. 19 throughout 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 regulation agency DLA Piper are additionally contributors to UDPN improvement.
According to its white paper, the UDPN is a distributed ledger know-how (DLT) platform that might serve an identical function to what the SWIFT community does for banks, apart from stablecoins and CBDCs.
“Simply because the SWIFT community created the unique widespread normal for messaging between monetary establishments throughout totally different settlement techniques, the UDPN will serve the identical function for the rising technology of CBDCs and stablecoins.”
Based on 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, nonetheless, that it solely helps “CBDCs and controlled fiat-backed stablecoin forex techniques as cost strategies,” including:
“No unregulated public-chain crypto-currencies, comparable to Bitcoin, might be accepted.”
Eight different proof-of-concept exams are scheduled for the community, together with issuing and circulating a CBDC and bank-issued stablecoin and utilizing UDPN as a cost gateway for e-commerce.
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The UDPN has been in improvement by Pink Date for almost two years,
Earlier than launching this digital funds system, the corporate was identified for its work on Blockchain-based Service Community (BSN), China’s nationwide blockchain venture.
In a now-deleted roadmap posted on Jan. 15, 2021, the BSN stated it deliberate to construct a world CBDC system that “will fully change the present cost and circulation methodology, enabling a standardized digital forex switch methodology and cost process for any data system.”
The newest white paper makes no point out of Pink Date’s involvement in steering China’s blockchain venture, nor of the nation’s personal CBDC efforts with its digital yuan.
A spokesperson for the venture advised Cointelegraph there may be “no connection in any way between BSN and UDPN” because the latter is “managed and ruled in a decentralized method.”
In June, Pink 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.