Red Date Technology is a blockchain infrastructure company. The company is currently in the process of building a blockchain project for China. At the same time, it launched an innovative system during the 2023 edition of the World Economic Forum (WEF) in Davos, Switzerland. Check out this blockchain project focused on stablecoins and CBDCs.
A SWIFT-like system for CBDCs
There is currently a split between stablecoins and central bank digital currencies. To fill the latter, a Hong Kong-based blockchain company has launched a system. Reddit reported this information through a post on January 23, 2023. It seems that the company Red Date Technology launched a digital payment system on January 19 in Davos.
The new solution aims to build the SWIFT of CBDCs and stablecoins. It is specifically a Universal Digital Payment Network (UDPN). The system was designed in collaboration with technology engineering company GFT Technologies.
There was also the contribution of the TOKO platform, specialized in the creation of digital assets. The platform in question belongs to the law firm DLA Piper.
The UDPN white paper states that it is a Distributed Ledger Technology (DLT) platform. The objective of the new system is similar to that of the SWIFT network dedicated to banks. A press release discussing the new platform states: “Just as the SWIFT network created the original common standard for messaging between financial institutions across different settlement systems, UDPN will serve the same purpose for the emerging generation of CBDCs and stablecoins.“.
Proponents of the new digital payment solution have said that some entities are already involved in the project. Specifically, anumber of first-tier bankswill test the network in cross-border transfers and exchanges. To do this, Proof of Concept (PoC) use cases are set up.
No details were provided on the banks participating in the PoCs. However, the following banks were represented at the launch of the system in Davos: Deutsche Bank, The Bank of East Asia, HSBC, Akbank and Standard Chartered.
UDPN will only support CBDCs and fiat-backed stablecoins. These stablecoins will still need to be regulated as payment methods. “No unregulated public blockchain cryptocurrencies, such as bitcoin, will be accepted“, reads the white paper of the new system.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.