24 Aug 2020 Samantha McLauren
China’s Blockchain Service Network To Support Stablecoins In 2021
China seems to have really stepped up into the blockchain development realm with its national Blockchain Service Network, dubbed BSN. One of the major tech companies, involved in the development of China’s BSN network, Red Date Technology, disclosed that the network will soon start to integrate stablecoins.
As noted in the project’s pilot in late 2019, BSN is a state-backed venture for supporting mid-sized companies in developing and deploying blockchain-based applications.
Red Date Technology’s CEO, Yifan He, stated that the stablecoin integration will be used as a payment method for the variety of services on BSN’s ecosystem. „Stablecoins can make payments much safer, quicker and easier”, He added.
The usage of stablecoin would allow for instant settlement between public city nodes with the BSN portals, the exec also said. According to He, “BSN involves many clearing and settlements among participants. For example, public city nodes providers allocate cloud resources onto BSN, and the BSN portals sell BSN resources to their end developers. Then part of the money the portals receive will be paid to the public city node providers, currently, we are going through banks.”
However, there is still no information about what cryptocurrencies will be included in the project. Also, BSN made a series of posts on Twitter, explaining that the BSN would never issue its own cryptocurrency, as well as that BSN would not provide backing for cryptocurrencies.
BSN may be an ideal fit for China’s central bank-issued digital yuan, or the DC/EP (digital currency electronic payment). Red Date Technology’s CEO further explained that the DC/EP project may use BSN’s infrastructure for interbank settlement or circulation, as BSN has public city nodes all across China.
Yifan He’s opinion is backed by Sky Guo, who is CEO of Cypherium. Guo, however, noted that the DC/EP is focused primarily on retail payments, while BSN is organized more towards enterprise usage of blockchain.
“The digital yuan could be integrated into the BSN, but at the moment it is not clear enough yet”, Guo concluded.
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