The Chinese national blockchain project, the Blockchain Service Network, has recently announced that it plans to pilot integration with global central bank digital currencies (CBDCs) as part of its national blockchain project, the BSN.
According to a BSN blog post, the BSN is looking to build a universal digital payment network (UDPN) based on CBDCs of various countries as part of its 2021 roadmap.
Currently, at the design stage, the beta version of UDPN is expected to launch in the second half of 2021, with the BSN planning to complete the UDPN development in five years.
Through the UDPN, BSN aims to enable a standardized digital currency transfer method and payment procedure. As the new system intends to harmonize systems like banking, insurance, and mobile apps through APIs to provide a relatable and affordable global payment solution.
The BSN confirmed that China is serious about CBDC development, which crowns it as the biggest leader in the crypto financial system. The blog wrote, “The CBDCs will completely change the current payment and circulation methods of traditional currencies, consistently build payment systems’ resilience and significantly increase the global circulation of commodities and cross-currency settlement.”
Originally, the BSN is a Chinese government-backed blockchain initiative that is positioned as a platform to help small businesses create and provide blockchain apps on blockchains. Due to popular demand, the program was officially launched in April 2020 for global commercial use.
Finally, the BSN promised that for 2021 it is seeking to expand on its network, reachability, ecosystem, and work even further on the UDPN. What do you think? Will this allow China to lead the CBDC charge? Or is it irrelevant?
Helen Partz “China’s blockchain project BSN to pilot global CBDC system in 2021” 17 Jan, 2021.