The Universal Digital Payments Network (UDPN), a fiat digital currency interoperability solution, has unveiled the introduction of sandboxes designed specifically for commercial and central banks.
Through the launch of the sandbox, the UDPN aims to support interoperability among various digital currencies, including stablecoins, tokenized deposits, and central bank digital currencies (CBDCs).
Supporting both retail and wholesale CBDC as well as purpose bound money, several stablecoins are integrated with UDPN, such as PayPal USD, Paxos Dollar, USDC and Tether.
Marika Lulay, CEO of UDPN-contributor GFT, commented: “With the All-in-One Digital Currency Sandbox, we are making a significant leap in digital currency deployment. Banks receive a robust arena for innovation and partnership”
The UDPN was established by Red Date Technology, known for co-founding China’s Blockchain Based Service Network (BSN) in collaboration with government-owned entities.
In terms of retail CBDCs, the sandbox enables commercial banks to test the functionality of a retail CBDC system. This includes experimenting with features like quota management, circulation, and digital wallets.
Initially, when the UDPN released its whitepaper, it stated that there would be no charges for users at the beginning.
However, its business model relies on fees for transfers and swaps. Therefore, commercial banks will be charged a starting fee of $15,000 per month, while central banks face a monthly fee of $20,000.
Lulay concluded: “Our dive into diverse digital currency technologies marks a shift from mere exploration to crafting tomorrow’s financial infrastructure.”
