Stablecoins Set for Integration with China’s Blockchain Service Network (BSN) in 2021
China’s Blockchain Service Network (BSN), a nationwide blockchain initiative, will soon support the integration of stablecoins within its ecosystem. The development was revealed by Red Date Technology CEO, Yifan He, who confirmed to Cointelegraph that this Chinese blockchain project might launch the stablecoin integration support as soon as 2021.
BSN has been on the rise, having launched back in October 2019 as a state-backed solution that enhances the development of blockchain applications by medium-sized businesses. The recent remarks by Yifan come as a big speculative boost for the project, which currently enjoys the support of prominent stakeholders, including China UnionPay and the State Information Center (SIC).
Stablecoins Value Addition in BSN
With the volatility associated with crypto markets, stablecoins have emerged as an alternative to hedge against extreme price movements. Yifan noted that the support of stablecoins within the BSN ecosystem, therefore, makes a good case given their underlying fundamentals in stability, ease of use, and security. He went on to highlight that stablecoins will scale the BSN settlement network by providing instant settlement services,
“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.”
Right DC/EP Candidate?
China’s digital yuan ‘DC/EP’ is so far the most advanced Central Bank Digital Currency (CBDC); its pilot was recently scaled significant cities, including Beijing and Hong Kong. Well, could the DC/EP be a prospective candidate for the BSN network? According to Yifan, it is a good fit given its PCN bank coverage in China,
“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, however, did not specify which stablecoins would be making a debut in 2020. It is also quite noteworthy that BSN has maintained that it is not a blockchain network and will never engage cryptocurrencies. Also, only BSN services can be sold as opposed to purchasing BSN in a digital asset like a transaction.