China is building a new system to integrate international central bank digital currencies as part of the national blockchain project BSN.
The Blockchain Service Network (BSN), the Chinese national blockchain project, is planning a pilot implementation for integration with global central bank digital currencies.
According to a blog post on January 15, BSN is trying to create a universal digital payment network or UDPN based on CBDCs of various countries as part of its 2021 roadmap. The beta version of UDPN, which is currently under design, is expected to be released in the second half of 2021. BSN plans to complete its UDPN development within five years.
With UDPN, BSN aims to enable a standardized digital money transfer method and payment procedure. The new system aims to bring together systems such as banking, insurance, enterprise resource planning and mobile applications through APIs to provide a cost-friendly global payment solution.
In his blog post, BSN once again confirmed that China is serious about further CBDC development, identifying it as the biggest game changer in the financial system:
“CBDCs will completely change the current payment and circulation methods of traditional currencies, consistently establish the durability of payment systems, and significantly increase the global circulation of commodities and cross currency payments.”
UDPN is one of four goals in BSN’s roadmap for 2021. The other three are the further expansion of the BSN network, the promotion of the private BSN platform, and the expansion of the BSN ecosystem.