CBDCs and stablecoins to become interoperable with new SWIFT-style payment system

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A blockchain startup backed by China hopes to bridge the gap between CBDCs and stablecoins.

At the World Economic Forum in Davos, Red Date Technology revealed a worldwide payment system for digital tokens.

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The network will facilitate cross-border payments for CBDCs and stablecoins, making both interoperable.

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SWIFT of digital tokens aims to bridge CBDCs and crypto stablecoins

Red Date Technology, based in Hong Kong, are the architects behind China's Blockchain-based Service network (BSN). At the World Economic Forum, the company announced the development of a Universal Payment Network (UDPN).

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The UDPN will facilitate cross-border payments for digital currencies such as CBDCs and crypto stablecoins from anywhere in the world.

According to Red Date Technology’s whitepaper:

As an ever-increasing number of CBDCs and regulated stablecoins come
online, the need for interoperability grows. The UDPN meets this need, offering lower payment costs and rapid, seamless distribution

Credit: red date technology

The UDPN will be for the future of banking in relation to cryptographic technology and CBDCs, inspired by the SWIFT network for traditional financial institutions.

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The UDPN itself is backed by distributed ledger technology (DLT). For comparison, blockchains like Solana and Ripple (XRP) are also DLT-based networks.

Numerous "global tier 1 banks" are already on board with the UDPN, according to Red Date Technology, and have access to proof-of-concept copies of the technology.

Regarding Ethereum and Bitcoin, Red Date Technology said the UDPN will not support Bitcoin or unregulated cryptocurrencies.

From the whitepaper:

The network will support only CBDCs and regulated fiat-backed stablecoin
currency systems as payment methods. No unregulated public-chain crypto-
currencies, such as Bitcoin, will be accepted.

Yifan He, Red Date Technology’s CEO called cryptocurrencies a “ponzi scheme” in a local Chinese newspaper. No release date has been announced for UDPN.