Launch Of The Universal Digital Payments Network In Davos

The World Economic Forum (WEF) in Davos, Switzerland, introduced CBDCs to the Universal Digital Payments Network (UDPN). The goal of the network is to make it possible for these digital currencies to work together.

Over the last two years, GFT, Red Date Technology, TOKO, and DLA Piper have all worked on making UDPN better. In July 2022, a sandbox was set up where several banks could test stablecoin transfers and FX transactions.

The network was launched at Davos, where a panel discussed how digital money, interoperability, and infrastructure are changing quickly. People from Deutsche Bank, HSBC, Standard Chartered, The Bank of East Asia, and Akbank were on the panel.

The UDPN stated numerous Tier 1 universities will engage in proof-of-concept use cases for the rest of the month. It shows how UDPN’s integration of digital money with business, banking, and payment settings might solve present and future issues.

In the first two proofs of concept, two global banks will test UDPN’s ability to transfer and swap digital currencies across borders. They will also see how easy it is for the “Travel Rule” to be put into place on the UDPN between two financial institutions for anonymous stablecoin transfers.

“The purpose of UDPN is to investigate a potential alternative to existing payments systems by enabling interoperability between fiat-backed tokens of stablecoins and regulated protocols,” said Marika Lulay, CEO of GFT. “The decentralized approach and geographic breadth of participating firms, combined with the advanced technological solution deployed for these trials, set this network apart.”