Hong Kong-based Company Introduces New System for CBDCs

The Hong Kong-based blockchain startup introduced their platform for stablecoins and central bank digital currencies (CBDC) in Davos. While the platform called Universal Digital Payments Network (UDPN) was introduced at the World Economic Forum (WEF) 2023 conference held in Davos, Switzerland, it was emphasized that the project has a structure similar to the SWIFT system. The striking feature of the project is that it is a design where stable cryptocurrencies and CBDCs can work together. Ripple, which provides intermediary services in international payments using blockchain technology, seems to have gained a new competitor with this initiative.

China-based blockchain infrastructure company Red Date Technology said they have been working on the project for about 2 years. The company also made a name for itself with its work on China’s national blockchain initiative Blockchain Based Service Network (BSN). During the promotion, it was stated that UDPN will have a structure similar to SWIFT’s bank network, while the difference is the use of special distributed ledger technology (DLT) for stable cryptocurrencies and CBDCs on this platform.

Although the banks that will join the system have not been announced yet, it was seen that the officials of HSBC, Standard Chartered, Deutsche Bank, The Bank of East Asia and Akbank attended the UDPN promotional event in Davos. In addition, no information was provided about the stablecoins to be used on the platform, but the assets accepted as payment methods in the technical document of the network are seen as fiat-backed stablecoins and CBDCs. This shows that no stable crypto money, including Bitcoin, will be used in the system. In the statement, Red Date officials underlined that there is no relationship between their project UDPN and China’s Blockchain-Based Service Network (BSN), and said that UDPN will be a decentralized and managed project.