UDPN Introduces Digital Currency Sandbox For Banks
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The Universal Digital Payments Network (UDPN) has rolled out a cryptocurrency sandbox for both central and commercial banks. Unveiled at Davos in 2023, the UDPN is aiming for interoperability for cryptocurrencies, including CBDCs and stablecoins.
After collaborating with more than 25 worldwide commercial banks, technology companies, and central banks, the network has introduced its sandbox. With this initiative, members can design their own unique custom use cases, test pre-installed use cases, and learn about digital currency technology.
UDPN Focuses On Transparency And Cost Efficiency In Global Transactions
Central and commercial banks obtain a safe environment to manage and grant authorized access to other organizations in their domain. The sandbox presents a collection of Cryptocurrency technologies such as security and bond tokenization systems, purpose-bound money, stablecoins, tokenized deposits, wholesale CBDC, and retail CBDC.
The Universal Digital Payment Network (UDPN) seeks to ease cross-border transactions of stablecoins and Central Bank Digital Currencies (CBDCs) worldwide. The structure connects the business IT system with both decentralized and centralized currency platforms, utilizing Hyperledger BESU as its fundamental framework.
UDPN, developed on Distributed Ledger Technology (DLT), functions as an innovative interconnected payments system for regulated cryptocurrencies. It emphasizes transparency and cost efficiency in worldwide transactions.
The Chief Executive Officer of UDPN-contributor GFT, Marika Lulay stated that With the Comprehensive cryptocurrency Sandbox, the team is taking a huge step forward in Digital currency implementation.
Banks get a solid arena for partnership and innovation. He added that embracing cryptocurrency technologies indicates a change from basic investigation to constructing the future of financial infrastructure.
UDPN Intends To Enhance Efficiency In Financial Transactions Worldwide
UDPN Alliance is currently involved in 12 PoCs with payment service providers, technology firms, and global banks, allowing the exploration of various use scenarios and cases.
The architecture of UDPNs includes a decentralized network of Validator Nodes on-chain, along with Business and Transaction Nodes off-chain. Furthermore, the Transaction Audit and Reporting (TAR) on-chain enables regulatory supervision of digital currency transactions.
These nodes serve as a gateway, linking current IT infrastructure and various currency systems. Business nodes allow financial institutions and other entities to seamlessly integrate with UDPN.
Essentially serving as an API gateway, these nodes form a vital connection between UDPN and their current IT infrastructure. On the other side of UNPN, transaction nodes act as channels connecting UDPN and different currency systems.
These transaction nodes are flexible to a range of technologies, supporting regulated stablecoins, CBDCs, and other digital currencies expected in the future.
