Davos presents an experimental system for transactions with public stablecoins

The Universal Digital Payment Network (UDPN) was launched at the World Economic Forum. The system was created to ensure stable interaction between regulated stablecoins and central bank digital currencies (CBDCs). Forum participants note: UDPN is «an advanced digital currency payment project that has the potential to reduce the cost of digital payments and accelerate their adoption by banks and businesses of all sizes.»

The payment network has been developed over the past two years by decentralized cloud infrastructure company Red Date Technology. Interestingly, RDT is also the developer of the Blockchain-based Service Network (BSN), a blockchain network in China that is officially supported by the country’s ruling elite.

«The goal of UDPN is to explore a potential alternative to existing payment systems by enabling interoperability between stablecoins and regulated protocols backed by fiat currency,» said Marika Lulay, CEO of GFT, a global digital transformation company.

For the sake of experimentation, several global banks will take part in the UDPN proof of concept. Later, they will report back to officials on whether the system properly integrates digital currencies into everyday business, banking, and payments. Banks will test cross-border digital currency transfers and UDPN swap capabilities, as well as how financial institutions will be able to perform anonymous stablecoin transfers using the «travel rule» feature.

As a reminder, the EU regulator has postponed the adoption of the cryptocurrency law from February to April. In the long run, the MiSA law will allow Europe to become the first part of the world to establish clear rules for the regulation of digital assets. At the moment, the delay in voting on the bill is due to the difficulties of translating the 400-page document — the law should be available in all languages of the EU member states.