A Chinese firm is developing a new payment system interoperable with stablecoins and CBDCs –  that acts as a link for central banks to transfer and swap regulated digital currencies – recently unveiled at the World Economic Forum in Davos, Switzerland.

Dubbed the Universal Digital Payments Network (UDPN) and developed by Red Date Technology, the new system would reportedly work with the private sector, unlike the rival Ripple network, which mostly serves central banks. According to the announcement, several major banks, including HSBC, Deutsche Bank, and Standard Chartered, have been selected to participate in the pilot phase.

UDPN, in particular, noted that it would not work with decentralized public cryptocurrencies like Bitcoin, perhaps underscoring its efforts to comply with the ongoing Chinese ban on cryptocurrencies. Beijing is keen to prevent any form of capital outflow in the form of stablecoins or digital assets.