China’s Blockchain Service Network Prepares for Inter-country CBDC Platform – China’s first CBDC trials caught the attention of other central bankers. Now, the country plans to go global with the blockchain network.

China’s Blockchain Service Network (BSN) announced its 2021 plans on January 15. The company expects to create a universal digital payment network (UPDN) within 5 years. However, the beta test version of UPDN is scheduled to launch in the second half of the year in mid-2021.

Besides UPDN, BSN has three other main objectives for 2021. In the middle of these are expanding the BSN network and the overall ecosystem, as well as promoting private non-CBDC platforms.

What is a Blockchain Service Network?

Blockchain Service Network is a blockchain research and development company supported by the Chinese government. He is responsible for the development and deployment of comprehensive blockchain platforms that act as a digital backbone for the country. With more than 34,000 blockchain companies currently operating in China, the country’s use of technology goes all the way down to the economic base.

Digital yuan

In the middle of BSN’s plans is to take part in the Chinese government’s digital yuan distribution. The introduction of the digital yuan was a precious event in the CBDC segment. To many, it has outshined the efforts of the European Central Bank (ECB) in both scale and scope.

ECB tests payments in France, while China airdrops digital yuan to its citizens; involved citizens in races to win CBDCs. It launched P2P transfers and enabled various merchants to accept digital yuan payments.

Do BSN’s plans pose a threat to other countries? They say they are considering expanding their Public City Nodes for blockchains covering “most developed countries” and developing countries. This is not a CBDC intent; BSN blockchain network development goal.

However, the ECB raised the fear of foreign digital intervention in foreign exchange markets. In November 2020, the ECB laid out its “Money Rediscovery” strategy. ECB board member Fabio Panetta said one reason the digital euro was introduced was because the introduction of foreign CBDCs could pose a possible threat to Europe’s currency sovereignty.

How are things in America meanwhile?

On Thursday, January 14, US Federal Reserve Chairman Jerome Powell stated in an interview that the development of CBDC in the US is not something to be rushed into. In addition, since the dollar is the world’s reserve currency, it sees the country as having a first-attack advantage.

Powell stated that it would take years, not months, to produce a CBDC. However, he pointed out that there is something that needs to be done and should be done without fail.

Leave a Comment