China’s blockchain project BSN is set to test a global CBDC system in 2021

The Chinese national blockchain project Blockchain Service Network plans to carry out an integration test with the digital currencies of the world’s central bank.

According to a blog post on January 15, BSN wants to build a universal digital payment network (UDPN) based on the CBDC of several countries as part of its roadmap for 2021. The beta version of UDPN is currently in the drafting phase and is expected to be released in the second half of 2021. BSN plans to complete the development of UDPN in five years.

With the UDPN, BSN would like to enable a standardized digital currency transfer method and a standardized payment method. The new system aims to unite systems such as banking, insurance, corporate resource planning and mobile applications via APIs to provide a cost-effective global payment solution.

China’s blockchain project BSN is set to test a global CBDC system in 2021
China’s blockchain project BSN is set to test a global CBDC system in 2021

In the blog post, BSN once again confirmed that China is taking the further development of CBDC seriously, and pointed out that China is the greatest pioneer in the financial system:

“CBDCs will completely change the current methods of payment and circulation of traditional currencies, continually improve the resilience of payment systems and significantly increase the global circulation of goods and cross-currency settlement.”

UDPN is one of the four goals of the BSN roadmap for 2021. The other three goals are the further expansion of the BSN network, the promotion of the private BSN platform and the expansion of the BSN ecosystem.. The BSN said it will continue to invest heavily in blockchain research and development in 2021 to accelerate the global diffusion of blockchain technology.

As previously reported by Cointelegraph, The BSN is the blockchain initiative supported by the Chinese government, which was first piloted at the end of 2019. The project was originally positioned as a technology hub to help small and medium-sized businesses build and implement blockchain applications on top of blockchains. Sorry. The program was officially launched for worldwide commercial use in April 2020.

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