The new payment system is expected to be used for stablecoins and CBDC, like how banks use the SWIFT network.
The World Economic Forum (WEF) 2023 at Davos saw a positive development for the crypto space as a blockchain company released a new digital payment system. The concerned company, Red Date Technology, is a blockchain infrastructure company based in Hong Kong. At the WEF at Davos, it released the Universal Digital Payment Network (UDPN), for whose development companies like GFT Technologies and the tokenization engine TOKO were also involved.
A white paper for UDPN was released, which stated that UDPN would link CBDCs and stablecoins and be similar to what the SWIFT network does for banks. “Just as the SWIFT network created the original common standard for messaging between financial institutions across different settlement systems, the UDPN will serve the same purpose for the emerging generation of CBDCs and stablecoins,” said the white paper.
Red Date Technology also conveyed the news that top global banks were already testing the network, which was getting tested with different stablecoins and CBDCs. Other proof-of-concept tests were coming up for the network, which would check the network as a payment gateway for e-commerce and use UDPN for issuing and circulating CBDCs and stablecoins.
Red Date Technology is also heavily involved with China, building China’s national blockchain project, Blockchain-based Service Network (BSN). But a spokesperson for the project claimed there was no connection between UDPN and BSN.