China’s nationwide blockchain to add support for stablecoins

  • China’s BSN project will add support for cryptocurrencies, after all.
  • The country recently decided to add support for stablecoins at some point in 2021.
  • It is still unknown whether digital yuan will find its way to BSN, but there is a chance that it might happen.

China appears to be in the final phases of testing its CBDC, digital yuan. The country recently expanded the tests to new cities, and its central bank revealed that the coin is only used for small retail transactions at this time.

In addition, recent information revealed that the country’s national blockchain project, known as BSN (Blockchain Service Network) will add stablecoin support in 2021.

BSN to support stablecoins

The information came from Red Date Technology’s CEO, Yifan He. Red Date Technology is a tech firm that works on BSN development.

The development started last year, in late 2019. The initiative is backed by the country itself, and it is meant to provide support for medium-sized companies that would create new blockchain applications.

The firm’s CEO stated that BSN will utilize stablecoins for service payments within its ecosystem. With stablecoins being safe, fast, and easy to use, they will be a perfect medium for instant settlements between BSN portals and public city nodes providers. But, the firm’s executive also noted that it is still unknown which stablecoins will be included.

Will digital yuan come to BSN?

Interestingly, the announcement comes shortly after BSN’s international arm’s claim that cryptocurrencies will never be used within the BSN ecosystem. However, they did say that stablecoins may be used as a means of payment.

2. BSN services will NEVER involve the usage of any cryptocurrencies. We may integrate stablecoins as a means of payment on BSN. (3/4)— BSN (@bsnbase) August 11, 2020

In addition, the project also claimed that it will never have its own crypto, with the developers stressing that ‘You cannot buy BSN, only BSN’s services.’

1. BSN is not a blockchain. We will never issue a cryptocurrency. You cannot buy BSN, only BSN’s services. (2/4)— BSN (@bsnbase) August 11, 2020

He also noted that BSN is likely the best option for China’s upcoming CBDC, digital yuan. The coin is not blockchain-based, but despite this, it could still utilize BSN infrastructure. It still remains unclear whether or not this will actually happen, but there is a possibility that the benefits of bringing digital yuan to BSN might prove strong enough for the country to go through with it.

China’s nationwide blockchain to add support for stablecoins
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