Blockchain Service Network (BSN), a China-based blockchain infrastructure provider, backed by the Chinese Government announced that it has integrated cross-chain communication blockchain protocol Polkadot, Oasis and a Chinese focused public chain initiative Bityuan into its network.
BSN expanded its blockchain network portfolio with recent additions. Earlier this year, the network onboarded Ethereum, Tezos, Neo, EOSIO, and IrisNet. BSN plans to provide a centralized blockchain framework to bring leading networks under a single roof.
Blockchain Service Network is China’s most ambitious blockchain project as the country plans to lead the digital transformation of the global economy. BSN was originally launched in 2019, but the international version of the network was launched in July this year to allow blockchain developers to build and operate decentralized applications.
The new integration will help Polkadot developers to connect to the public chain of BSN. The cross-chain protocol announced to join BSN’s Open Permissioned Blockchain Initiative as the Chinese regulators heavily scrutinize decentralized public chains.
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Oasis and Bityuan
BSN announced that in addition to Polkadot, two other companies (Oasis and Bityuan) are joining the network. Oasis network helps developers build private and scalable decentralized finance applications, while Bityuan is a blockchain solutions provider to Chinese companies. Talking about Oasis Network, Jernej Kos, Director at the Oasis Foundation, said: “The Oasis Network’s privacy features can also create a new type of digital asset called Tokenized Data that allows users to take control of their data and earn rewards for staking it.”
Commenting on the development, Yifan He, Executive Director of BSN Development Association, said: “I am seeing commercial use cases built on the Bityuan framework are surging in China recently. I believe with this integration BSN will get developers around the world to be excited about building dapps that are enterprise-based and commercial oriented.”
Finance Magnates earlier reported about the adoption of Digital Asset Modeling Language (DAML) by BSN.
The race for a Central Bank Digital Currency (CBDC) is heating up, with countries ready to counter China’s speed. Japan appears to be at the forefront of this attempt, with tests already set for several regions.
Seeking Help from Everyone
The Japanese government has now tapped 30 firms to partner on the upcoming digital yen, Reuters reports. The report confirmed that the companies represent several of Japan’s top economic sectors. There are banks, brokerage firms, telecommunications service providers, utility firms, and more.
The digital yen has become a focal point of Japan’s economic strategy. The country is notorious for slowly adopting cashless payments, with cash representing up to 80 percent of settlements done in the country.
Now that it is moving ahead with its digital yen, the government is being cautious to ensure a successful implementation.
Hiromi Yamaoka, a former executive at the Bank of Japan, will head the group of companies in the tests. As he explained, the private banks in the group will be responsible for issuing the currency for the experiment. He also added that they hadn’t ruled out the prospect of other actors being part of the issuance process.
Yamaoka also noted that some of the country’s leading banks – including Mizuho Financial Group, Mitsubishi UFJ Financial Group, and Sumitomo Mitsui Financial Group – all had digital payment systems. Speaking on the experiment’s nature, he explained that they were looking to avoid a fragmented digital payments ecosystem.
“Japan has many digital platforms, none of which are big enough to beat cash payments. […] What we want to do is to create a framework that can make various platforms mutually compatible,” he said.
Steps Towards an Encompassing State-Backed Asset
The policymaker also explained that the Bank of Japan was dealing with a question of possible massive capital outflows from local banks once the CBDC arrives.
As he pointed out, they were looking to create a system where CBDCs and private deposits can co-exist. Tackling this problem, while also ensuring that the digital yen remains convenient to use and interoperable with different platforms, will require input from the private and public sectors.
Japan appears to be taking a page out of China’s playbook with its CBDC development. The latter began tests for its digital yuan in April and has involved several of its largest firms in the endeavor.
So far, companies like the Agricultural Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, and China Telecom have participated in the trials. Some large tech firms to get a piece of it also include Didi Chuxing, the nation’s largest ride-hailing service, and tech conglomerate ByteDance.
Last month, Mu Changchun, the head of the Peoples’ Bank’s Digital Currency Research Institute, confirmed to a news outlet that they also planned to seek input from WeChat Pay and Alipay. Both are the country’s largest digital payment processors, and their input will help ensure the digital yuan’s optimal access and interoperability.