China’s State-Backed Blockchain Project Has Unveiled A New Plan For Central Bank Digital Currencies

China’s state-backed blockchain project has unveiled a new plan for  central bank digital currency (CBDC). Blockchain-based Service Network (BSN), which combines different blockchain networks under one roof, aims to bring CBDCs together on a single platform in the future.

Blockchain based Service Network (BSN) is a blockchain project established with the support of companies such as China UnionPay, China Mobile, China Merchants Bank. BSN receives government support as well as private companies. According to Coindesk editor David Pan, the BSN project is a proof that ”China wants to be a superpower on blockchain”.

The central bank, the European Central Bank, the Fed, the Central Bank of Russia, the Central Bank of China and many other different banks are aiming to develop their own digital money. The goal of the BSN team in China is to combine these different CBDCs, which are supposed to be produced, into one roof.

Read: Mobile Money And Bkash Have Joined The Ripplenet Network

BSN will collaborate with international banks and technology firms to try to develop a universal digital payment network where digital currency produced by different states can be included at one place. It is announced such a payment network will be used for many different purposes, from banking to insurance.

BSN team announced that this framework is in the design stage, beta work will begin in the second half of 2021. And work is expected to continue until 2026.

Blockchain-based Service Network was launched in October 2019. Xinhua reported at the time of launch, that the main goal of the project was to improve the concepts of smart city and digital economy. The project is known to be overseen by private companies as well as the State Intelligence Center in China.

BSN uses not only blockchain, but also technologies such as 5G, artificial intelligence, Internet of things. The project aims to reduce the costs of small and medium-sized enterprises under the Smart City roof and to extend the use of commercial blockchain to wider scale.

BSN is known to integrate Tezos, NEO, Nervos, EOS, IRISnet and Ethereum networks into BSN on a global scale. Developers working on these networks can transfer their work to BSN to develop DApp (Decentralized Application).