Universal Digital Payments Network opens digital currency sandbox

Getting your Trinity Audio player ready...

The Universal Digital Payments Network (UDPN) recently announced the launch of sandboxes for commercial and central banks.

Developed by Red Date Technology, the firm behind China’s Blockchain-Based Service Network, UDPN aims to support interoperability between digital currencies, tokenized deposits, CBDCs, and stablecoins like Tether, USDC, Paxos Dollar, and PayPal USD.

UDPN uses a SWIFT-like messaging system with blockchain technology and smart contracts for interoperability. Standard Chartered (NASDAQ: SCBFF), Deutsche Bank (NASDAQ: DB), and several other large banks have participated so far, paying monthly fees of $15,000. Central banks will pay $20,000 per month to participate.

The UDPN was launched at the World Economic Forum (WEF) in Davos in January 2023.

The BSV blockchain makes all of this scalable

The UDPN sandboxes are among 12 initiatives launched by UDPN. Among other things, it’s exploring cross-border CBDCs, aiming to reduce payment and foreign exchange costs and promote the use of digital currencies.

All of this financial innovation is encouraging and worthy of exploration. However, for it to work at scale, banks and financial institutions of all kinds will require a single, scalable public blockchain like BSV.

In recent tests, the BSV blockchain has demonstrated a throughput capacity exceeding
one million transactions per second with average fees of $0.00003. This scalable utility blockchain allows instant payments, currency swaps, and asset tokenization.

Already, remittance applications like Centbee and IoT firms like Rekord IoT have working applications utilizing BSV blockchain micropayments for various business purposes. Next-generation cybersecurity tools like Sentinel Node (built in collaboration with IBM) work on the BSV blockchain, while user-driven functions like 1Sat Ordinals enable the tokenization of everything.

Sandboxes are a great first step for testing concepts, but as the world moves onto blockchains, scalability and low fees will be paramount. Today, the BSV blockchain is leading the pack when it comes to these crucial blockchain components.

Legal compliance for an honest world

A single, scalable public blockchain aims to have time-stamped records of every transaction. This makes it possible to track and trace criminal activity using the BSV blockchain’s alert system to communicate between nodes, enabling freezing of assets and Digital Asset Recovery.

For banks, central banks, corporations, and others using an open financial network, legal compliance is crucial. The BSV blockchain has been designed to comply with financial regulations, including AML/KYC rules and property laws.

The BSV blockchain exists as one single, scalable global blockchain—an immutable ledger of truth enabling all of the interoperability and utility envisaged by the UDPN and others.

Watch: DICT’s Jocelle Batapa-Sigue—There’s a digital divide from lack of innovation mindset