Stablecoins to join China’s blockchain network by 2021

An executive involved in the project explains the benefits of stable coins for BSN

Blockchain Service Network (BSN), China’s nationwide blockchain project is expected to incorporate stablecoins support by 2021, CoinTelegraph reported.

Yifan He, CEO of Red Date Technology which is one of the major tech companies involved in the development of BSN, has stated that China’s dream project will begin integrating stablecoins soon.

Backed by the Chinese Government policy think tank, the State Information Centre (SIC), the BSN was piloted in late 2019. The ambitious project aims to provide a trusted and scalable infrastructure for supporting new blockchain projects in China and also works towards the development of smart cities and the digital economy.

He explained that stablecoins will be deployed for the purpose of using them as payment for various services on the BSN ecosystem, including cloud resources.

“Only stablecoins can make it much easier, quicker, and safer,” he noted.

His statement comes shortly after an official announcement by the BSN’s international arm, clarifying that the service will never issue its own cryptocurrency. BSN further explained that the project is not a blockchain platform and that “You cannot buy BSN, only BSN’s services.” However, in a tweet on August 11, BSN said that the initiative may still “integrate stablecoins as a means of payment on BSN”.

At the current stage of the initiative, it is yet to be decided what stablecoins will be incorporated into China’s major blockchain-related project.

Stablecoins were considered because of their ability to enable instant settlement between public city nodes providers and the so-called BSN portals, the executive added.

“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,” he explained.

BSN would be a perfect fit for China’s national digital payments currency project, the digital yuan, he said. Though the digital yuan is not based on blockchain technology, BSN’s infrastructure could be beneficial to the project, the exec added.

“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,” he explained.