China’s Blockchain-based Service Network (BSN) has put plans in place to integrate central bank digital currency (CBDC) before the end of the year.
The universal digital payment network (UDPN) is currently at its design phase, which will be completed in five years.
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However, the beta version will go live in the second half of 2021, and plans for its launch have gone far, according to a blog post. The plan is to integrate CBDCs from different nation-states into the network when it finally goes live.
BSN wants to roll out the next-generation set of the internet that supports and integrates several private and public blockchains into its international network.
The network’s Chinese version only offers support for enterprise blockchains. The main goal is to ensure that blockchain is affordable for SMEs and individuals, with accessibility and pricing similar to low-cost cloud hosting.
Encouraging more blockchain adoption
The new project will concentrate on developing an international digital payment network to encourage more blockchain adoption.
It’s no longer news that China is on the verge of rolling out its CBDC, after carrying out several tests.
But its national blockchain project is set to provide a more standardized form of digital currency transfer policies and adopting a blockchain network.
Collaboration with international technology and financial institutions
According to the announcement, the CBDCs will significantly impact the present traditional currency payment methods. But the new integration of CBDC into the blockchain framework will increase global cross-currency settlement and universal circulation of commodities.
China will also work with several international technology firms and banking institutions to promote this integration. With the network, information systems such as ERP, mobile applications, insurance, and banking will benefit from the UPDN services. This will foster a cost-effective global payment method and more standardized digital currency transfer procedures. However, participants will be able to access the UDPN network via API connections. While the network is still in its design phase, various Chinese states are currently rolling out the public city nodes (PCN).