Posted 8 months ago | by Ben Armstrong
Chinese Blockchain Project BSN to Integrate Stablecoins in 2021
The Blockchain Service Network (BSN) just announced their plan to launch stablecoin support next year. While this may be positive in some ways, the kinds of stablecoins supported could be limited.
The statement came from a conversation between the CEO of Red Date Technology, Yifan He, and Cointelegraph. Red Date Technology is a well known tech firm and one of the companies that is working to advance the BSN.
Explaining the motive behind this launch, the executives highlighted the need of stablecoins in payment for numerous services on the BSN network, specifically cloud resources.
The people behind the BSN also think that stablecoins will be productive in processing instant settlements, improving issues regarding momentum between the BSN portals and public city nodes providers.
Yifan He stated,
“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.”
Short on Specifics
Further details of chosen stablecoins haven’t been disclosed at the current stage of the project, as reported by the executive.
Earlier this month, BSN’s tweet announced that the project, “may integrate stablecoins as a means of payment on BSN.”
The BSN also told the public that the BSN’s services will never include any cryptocurrency’s use and rejected the theory that the project will be another blockchain platform.
“You cannot buy BSN, only BSN's services,” the developers stressed
The BSN, as Yifan He mentioned, would be the perfect match for the Chinese digital yuan. Also known as DCEP, the project is funded by China's central bank, the People's Bank of China (PBoC), which is the electronic payment system for the digital currency.
Yifan He mentioned,
“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.”
The concept of digital currency of China's central bank being part of BSN was once suggested by Sky Guo, Chairman and CEO of China's blockchain partner business Cypherium, “but at the moment it is not clear enough yet,” Guo added.
According to the Cypherium’s CEO, retail payments are digital yuan’s key priority, while the BSN targets business use cases for blockchain technology.
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