China is actively building a new system to integrate international central bank digital currencies. According to recent reports, the national blockchain project known as the Blockchain Service Network is looking to create a universal digital payment network (UDPN) based on the CBDCs of different countries.
The universal digital payment network is currently at the design stage and would launch in the second half of 2021. But the project will remain under development within the next five years.
With the UDPN, the Blockchain Service Network aims to provide an up-to-date digital currency transfer and payment procedure. The new system intends to also bring together different systems like banking, enterprise, insurance, and resource planning through APIs to provide a cost-friendly global payment solution.
Recent activities in the country further confirm that China is serious about its CBDC and becoming the biggest game-changer in the financial system.
An excerpt from the report:
“The CBDCs will change the current payment and transfer method of traditional currencies. They will also facilitate a formidable payment system, and significantly increase the global circulation of commodities and cross-currency settlement.”
Other plans for blockchain technology in China
The universal digital payment network is one of the four goals on the Blockchain Service Network’s list for 2021. The other three plans are an extension of the BSN network, specifically created to promote the private BSN and broaden the BSN ecosystem.
The blockchain network also plans to invest heavily in the research and development of blockchain in 2021 to accelerate the mass adoption of blockchain technology worldwide.
According to reports by Cointelegraph, the BSN is a government-backed blockchain initiative in China, which was first piloted in 2019. The project was initially positioned as a tech hub to help small and medium-sized businesses build and integrate blockchain apps. However, the network was launched officially in April 2020 for global commercial use.