UDPN: cross-border payments for stablecoins
A Chinese company presented in Davos the Universal Digital Payments Network (UDPN), a new cross-border payments system designed to facilitate interoperability with stablecoins and central bank digital currencies (CBDCs).
The Universal Digital Payments Network (UDPN) was officially launched at the World Economic Forum in Davos, Switzerland. The aim of this new network, developed by Red Date Technology in collaboration with other companies in the sector, is to offer individuals and businesses a secure and seamless way to make digital payments with stablecoins and CBDCs.
The Chinese company explained: “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”.
Compatible with most CBDCs and stablecoins
Stablecoins are a type of cryptocurrency pegged to the value of a fiat currency, such as the US dollar. This means that their value does not fluctuate as much as other cryptocurrencies, which makes them more attractive for use in digital payments. CBDCs, on the other hand, are digital currencies issued and controlled by the central banks of each country, which emulate the fiat currency of the country in which they circulate.
The UDPN will facilitate the exchange of stablecoins and CBDCs between different platforms and wallets, allowing individuals and businesses to use them for a wide range of transactions. The network will also provide a high level of security, using the latest blockchain technology to ensure transactions are secure, fast and cheap.
The network is already being adopted by large corporations and financial institutions and is expected to continue to gain traction in the coming months and years. Some of the major banks, HSBC, Standard Chartered, Bank of East Asia and Deutsche Bank, have already announced their intention to participate in the testing phase.
This strong interest from the financial sector demonstrates the potential of this new network to revolutionise the way we make digital payments. But it also highlights the importance of international collaboration in the development of new technologies and platforms.
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