The Universal Digital Payments Network (UDPN) has introduced a digital currency sandbox designed for both commercial and central banks.
Launched at Davos last year, the UDPN aims to enhance interoperability among digital currencies, including stablecoins and Central Bank Digital Currencies (CBDCs). After collaborating with over 25 global commercial and central banks, as well as technology companies, the network has rolled out its sandbox. This environment allows members to explore digital currency technology, test existing use cases, and develop new custom applications.
The sandbox offers commercial and central banks a secure platform to manage and grant permissioned access to other institutions within their ecosystem. It features a variety of digital currency technologies, including retail CBDCs, wholesale CBDCs, tokenized deposits, stablecoins, purpose-bound money, and systems for tokenizing securities and bonds.
Additionally, the sandbox provides complete retail CBDC systems, enabling banks to test quota management, issuance, circulation, third-party access APIs, as well as wallet and transaction management.
Marika Lulay, CEO of GFT, a contributor to UDPN, stated, “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. Our exploration of diverse digital currency technologies marks a shift from mere investigation to shaping the financial infrastructure of the future.”
For more information on payments, visit NextGen Nordics on April 23, 2024.