China’s nationwide blockchain project – Blockchain Service Network – will be integrating stablecoin support in 2021

China’s nationwide Blockchain project, Blockchain Service Network (BSN), will integrate support for stablecoin by 2021.

Blockchain Service Network could be the best fit for the digital yuan

This is confirmed information from Yifan He, CEO of big technology company Red Date Technology. Piloted at the end of 2019, China’s BSN project is a state-backed initiative aimed at assisting medium-sized businesses in building and deploying Blockchain applications.

Yifan He shares:

“Only stablecoins can make it much easier, quicker, and safer. Stablecoins will purportedly enable instant settlement between public city nodes providers and the so-called BSN portal.”

Stablecoins are a practical solution that instantly solves problems between public city node providers and BSN gateway.

The executive director shared:

“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.”

At its current stage, it seems that the developers have yet to decide what kind of stablecoin will be included in the significant Chinese Blockchain-related project.

Yifan He’s stance comes as soon as BSN’s international branch officially announced that their services would never involve the use of any cryptocurrency.

In a tweet August 11, a spokesperson from BSN shared:

According to He, BSN is ideally suited for China’s national digital currency project, the digital yuan, also known as the Electronic Payment / Digital Currency project (DC / EP). This is a project supported by China’s central bank, the People’s Bank of China (PBoC).

While China’s digital yuan is not Blockchain-based, it can still utilize BSN infrastructure.

He shared:

“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.”

Yifan is not alone, though, with the Chinese central bank’s proposal that the digital currency could somehow be incorporated into the BSN. The same viewpoint with Yifan is Sky Guo, CEO of the Chinese blockchain partner company Cypherium. He thinks the digital yuan could be integrated into BSN, but for now, things are not clear enough.

Guo also noted that the digital yuan focuses on retail payments, while BSN solves enterprise use cases for Blockchain technology.

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