• Red Date Technology, the designer of China’s state-backed Blockchain-based Service Network (BSN), has launched a new project called Universal Digital Payments Network (UDPN) to enable the interoperability between stablecoins and central bank digital currencies (CBDCs) in cross-border payments.
• The goal of the UDPN is to allow businesses from different countries to transact and settle in different regulated digital currencies.
• The UDPN is seen as an alternative to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) which has been seen as a leverage for the West.
Red Date Technology, the designer of China’s state-backed Blockchain-based Service Network (BSN), recently launched a new project called Universal Digital Payments Network (UDPN) in Davos, Switzerland at the World Economic Forum. This project is aimed at allowing the interoperability between stablecoins and central bank digital currencies (CBDCs) in cross-border payments.
The UDPN would serve as a platform that would allow businesses from different countries to transact and settle in different regulated digital currencies. This would help to create a common standard across different settlement systems, much like the Society for Worldwide Interbank Financial Telecommunication (SWIFT) which is currently the most common system for interbank transfers globally.
The UDPN is seen as an alternative to SWIFT, which has been seen as a leverage for the West in the past. For example, following the Russia’s invasion of Ukraine, the West cut off Russian banks from the SWIFT network. Both Russia and China have sought greater autonomy from SWIFT, so the UDPN could provide them with an opportunity to achieve this goal.
Red Date Technology hopes that the UDPN will allow countries to use a variety of digital assets in foreign trade. This would include both fiat-based digital assets such as stablecoins and state-issued digital currencies. It would also facilitate the use of digital assets for international settlements, eliminating the need for traditional payments systems.
The UDPN is still in the early stages of development, but it is expected to have a major impact on the global financial system in the near future. It has the potential to revolutionize the way international payments are done, as well as provide countries with greater autonomy and flexibility. As the project develops, it will be interesting to see how this new technology will change the global payments landscape.