China's national blockchain project BSN may be the most suitable for digital yuan.
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China's national blockchain project Blockchain Service Network (BSN) will integrate stable currency support in 2021.
Yiyi He, CEO of Red Date Technology, a large technology company involved in the development of BSN, told Cointelegraph that the project will soon begin integrating stablecoins.
China's BSN was piloted at the end of 2019. It is a state-backed program designed to support medium-sized enterprises in building and deploying blockchain applications.
The executive explained that the stablecoin will be used as payment for various services (including cloud resources) on the BSN ecosystem. The executive pointed out: "Only stablecoins can make it easier, faster and safer."
He said that the stablecoin will allegedly enable immediate settlement between public city node providers and the so-called BSN portal.
"BSN involves many clearings and settlements between participants. For example, public city node providers allocate cloud resources to BSN, and BSN portal sells BSN resources to its final developers. Then, part of the funds received by the portal Will be paid to public city node providers, and we are currently conducting transactions through banks."
The executive said that at this stage of the plan, it has not yet decided which stablecoin will be included in China's major blockchain-related projects.
He made the above comments shortly after the BSN International Department officially announced that its services will never involve the use of any cryptocurrency. BSN said in a tweet on August 11 that the plan still "may integrate stablecoins as a payment method for BSN."
BSN added that the project is not a blockchain platform and will never issue its own cryptocurrency. The developer explained: "You cannot buy BSN, but only BSN services."
He said that BSN will be most suitable for China's national digital currency project digital yuan. This project is also known as Digital Currency Electronic Payment (DCEP) and is supported by the Central Bank of China and the People's Bank of China (PBoC).
Although China's digital renminbi is not based on blockchain technology, it can use BSN infrastructure. He said: "If some commercial banks will use blockchain in DCEP settlement or circulation, then BSN will be the best infrastructure because we have PCNs all over China. On this point, we are working with several commercial banks Keep in close contact."
He is not alone in suggesting that China's central bank digital currency should be included in the BSN in some way. Sky Sky, the CEO of Chinese blockchain partner company Cypherium, told Cointelegraph that digital renminbi can be integrated into the BSN, "but it's not clear enough."
Guo also pointed out that Digital Yuan focuses on retail payments, while BSN targets enterprise use cases of blockchain technology.
Article reprinted: www.dltsg.com