Chinese blockchain giant becomes new competitor to SWIFT and Stellar Lumens
- UDPN aims to serve CBDCs and Stablecoins through the incorporation of scalability and interoperability.
- UDPN’s whitepaper highlights some crucial features and solutions ahead of the commercialization stage.
As demand for CBDCs and stablecoins increases, Stellar Lumens may have a promising competitor vying for customers’ attention.
The Universal Digital Payment Network (UDPN) was just unveiled in Switzerland, at the recently held World Economic Forum (WEF) 2023 in Davos.
UDPN’s white paper describes the ecosystem as a distributed ledger technology (DLT). UDPN aims to do for CBDCs and Stablecoins what SWIFT does for financial firms as a messaging system. The network mirrors SWIFT, as an alternative to fix the barriers between stablecoins and central bank digital currencies (CBDCs).
UDPN is also backed by Red Date Technology, one of Hong Kong’s most valuable Blockchain companies. Red Date Technology centers its activists around next-generation public IT system infrastructures. Red Date Technology has also been working on developing UDPN for over a year.
UDPN is also associated with TOKO and GTF technologies. Both platforms have also helped to accelerate UDPN’s network growth.
The UDPN white paper reveals many observations on the current state of the CBDC market. Even as more countries move towards creating their own CBDCs and stablecoins, UDPN believes the lack of an official messaging platform across the industry could slow adoption.
The white paper also emphasizes the need for scalability and universal interoperability. Both features will promote the sustainable development of stablecoins and CBDCs. The White Paper added;
UDPN solves these problems by providing a global payment messaging network to support stablecoins and CBDCs across decentralized and centralized currency systems. UDPN will provide a shared, decentralized network and associated standards; the messaging backbone for efficient and seamless cross-border digital currency payments across protocols and systems.
UDPN presents key solutions for CBDCs and Stablecoins
Apart from changing transactions between digital account systems, UDPN will also enable traditional messaging systems. Commercial banks will have quick access to participate in the decentralized economy. UDPN will enable this, by providing capital pools and building relationships with local central banks to banks, to help them offer cross-border transactions.
Other notable solutions were listed in the white paper, along with some regulatory paths the network is taking to maintain order and avoid sanctions.
The network will only support CBDCs and regulated fiat-backed stablecoin currency systems as payment methods. No unregulated public chain cryptocurrencies, such as Bitcoin, will be accepted. The addition of new currency is subject to a vote by the UDPN alliance members as part of the network’s decentralized governance approach.
The White Paper explained, adding that there will be no provision of custodial services.
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The beta version of UDPN already went into use in the last quarter of 2022. Pilot commercialization is now planned for the second half of 2023.
Once launched, UDPN will have 8 alliance members as the core group of founders. It will later move to 16 and finally 24. Strategy, governance and roadmap will be handled by the alliance members after the vote has ended.
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