The Chinese government-backed Blockchain Service Network (BSN) project will start working with stablecoins in 2021 year. Yifan He, CEO of Red Date Technology, which participates in the development of BSN, told Cointelegraph about this..
According to him, stablecoins will be used to pay for services in the BSN ecosystem, including cloud resources.. Besides, they will allow instant settlements between public nodes belonging to different cities and the so-called “portals”.
“Only stablecoins are capable of providing a simple, fast and secure experience. BSN’s activities involve a variety of clearing and settlement operations. For example, a public city node provider allocates cloud resources to BSN, and portals sell these resources to end developers. After that, part of the money received by the portals will be paid to the providers of public city nodes. Now such operations are carried out through banks, “he said..
TO present moment the organizers of the initiative have not yet decided which stablecoins to add to BSN.
Shortly before this, BSN developers announced that they would not allow the use of all cryptocurrencies in their service and would not release their own cryptocurrency. “You cannot buy BSN, only BSN services,” they explained.
According to He, BSN is adapted to handle transactions with the People’s Bank of China’s digital yuan. “If some commercial banks decide to use blockchain to circulate digital currency, BSN will be the best infrastructure for them, since we have networks throughout China. We are in close contact with several commercial banks on this issue, “he added..
Cypherium CEO Sky Guo also announced that the digital yuan will be integrated into BSN, noting that the details of this process are currently unclear. He explained that the digital yuan is focused on retail payments, while BSN is intended to implement enterprise blockchain use cases..