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China’s Blockchain Service Network To Integrate Stablecoin Support In 2021

Blockchain Service Network (BSN), China’s nationwide blockchain project, will be integrating stablecoin support in 2021.

It has been reported that Yifan He, the CEO of Red Date Technology, a major tech company involved in the BSN development, said that the project will soon start integrating stablecoins.

However, BSN is a state-backed initiative that intends to support medium-sized businesses in building and deploying blockchain applications.

He explained that stablecoins will be used as payment for various services on the BSN ecosystem, including cloud resources.

He added:

“Only stablecoins can make it much easier, quicker and safer.”

He further said:

“Stablecoins will purportedly enable instant settlement between public city nodes providers and the so-called BSN portals. 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.”

According to him, at the current stage of the initiative, it is not yet decided what stablecoins will be incorporated into China’s major blockchain-related project.

China’s #Blockchain Service Network to launch stablecoin support in 2021 — Blockchain & Crypto Currency News (@mabling) August 24, 2020

His comments come shortly after the BSN’s international arm officially announced that its services will never involve the usage of any cryptocurrencies.

In an August 11 tweet, BSN said that the initiative still “may integrate stablecoins as a means of payment on BSN.”

Over the past few weeks, we have received some frequently asked questions about BSN. To answer these questions: (1/4) — BSN (@bsnbase) August 11, 2020

Likewise, the BSN added that the project is not a blockchain platform and will never issue its own cryptocurrency.

Developers explained:

“You cannot buy BSN, only BSN’s services.”

According to He, the BSN would be the best fit for China’s national digital currency project, the digital yuan. Also known as the digital currency electronic payment, or DCEP, the project is backed by China’s central bank, the People’s Bank of China (PBoC).

Furthermore, while China’s digital yuan is not based on blockchain technology, it could use BSN infrastructure.

He said:

“If some commercial banks will use blockchain on DCEP settlement or circulation, BSN would be the best infrastructure since we have PCNs all over China. We are keeping in touch with several commercial banks closely regarding this.”

It has been analyzed that He is not alone in suggesting that China’s central bank digital currency could be somehow incorporated into the BSN.

Sky Guo, the CEO of China’s blockchain partner firm Cypherium, said that the digital yuan could be integrated into the BSN, “but at the moment it is not clear enough yet.”

Thus, Guo noted that the digital yuan is focused on retail payments, while the BSN addresses enterprise use cases for blockchain technology.

Source: Cointelegraph | Image: Boxmining

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