Davos-launched blockchain challenge goals to be the ‘SWIFT’ of stablecoins and CBDCs

A Hong Kong-based blockchain firm has launched a digital funds system geared toward bridging the hole between stablecoins and central financial institution digital currencies (CBDCs).

Pink Date Know-how, the blockchain infrastructure agency that can also be main certainly one of China’s blockchain efforts, launched the Common Digital Fee Community (UDPN) on Jan. 19 in the course of the World Financial Discussion board (WEF) 2023 assembly in Davos, Switzerland.

Tech engineering firm GFT Applied sciences and the digital asset creation engine TOKO from legislation agency DLA Piper are additionally contributors to UDPN growth.

In accordance to its white paper, the UDPN is a distributed ledger expertise (DLT) platform that might serve an analogous objective to what the SWIFT community does for banks, apart from stablecoins and CBDCs.

“Simply because the SWIFT community created the unique widespread commonplace for messaging between monetary establishments throughout totally different settlement programs, the UDPN will serve the identical objective for the rising technology of CBDCs and stablecoins.”

In accordance with a Jan. 19 press launch, a “variety of international tier 1 banks” are already concerned in use case proof of ideas (POCs) to check the community in cross-border transfers and swaps.

The discharge didn’t disclose which banks had been participating within the POCs, however Deutsche Financial institution, HSBC, Normal Chartered, The Financial institution of East Asiaand Akbank had been represented on a panel on the UDPN launch in Davos.

A high-level overview of the UDPN structure depicting CBDC programs connecting to off-chain “transaction nodes” which in flip connect with the on-chain “validator nodes.” Supply: UDPN white paper.

The stablecoins for use within the POC had been additionally undisclosed. The networks whitepaper does state, nevertheless, that it solely helps “CBDCs and controlled fiat-backed stablecoin foreign money programs as cost strategies,” including:

“No unregulated public-chain crypto-currencies, corresponding to Bitcoin, shall be accepted.”

Eight different proof-of-concept assessments are scheduled for the community, together with issuing and circulating a CBDC and bank-issued stablecoin and utilizing UDPN as a cost gateway for e-commerce.

Associated: Going cashless: Norway’s digital foreign money challenge raises privateness questions

The UDPN has been in growth by Pink Date for practically two years,

Earlier than launching this digital funds system, the corporate was recognized for its work on Blockchain-based Service Community (BSN), China’s nationwide blockchain challenge.

In a now-deleted roadmap posted on Jan. 15, 2021, the BSN mentioned it deliberate to construct a worldwide CBDC system that “will fully change the present cost and circulation methodology, enabling a standardized digital foreign money switch methodology and cost process for any info system.”

The newest white paper makes no point out of Pink Date’s involvement in steering China’s blockchain challenge, nor of the nation’s personal CBDC efforts with its digital yuan.

A spokesperson for the challenge advised Cointelegraph there’s “no connection in anyway between BSN and UDPN” because the latter is “managed and ruled in a decentralized method.”

In June, Pink Date’s CEO, Yifan He, referred to as cryptocurrencies the “largest Ponzi scheme in human historical past.”

Replace (Jan. 23, 6:40 AM UTC): Added remark from UDPN spokesperson.