Six of the world’s largest banks – Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street – have stepped up efforts to launch new forms of currency. The technology of distributed registry will be used to make instant payments and clearing transactions in securities, writes the Financial Times.
In August last year, Swiss Bank UBS, together with Clearmatics Technologies has created a new cryptocurrency which is called the “utility settlement coin” (USC, “practical monetary unit for settlements”). Further to this the project joined BNY Mellon, Deutsche Bank and Santander. Banks are expected to improve the efficiency of financial operations, accelerating their final stages.
Now the project moved to a new stage, parties seek to deepen the discussion of USC with the Central banks and are working on additional measures for the protection of new cryptocurrencies.
“We are in discussion with Central banks and regulators and we will continue them in the next 12 months with the purpose of the limited launch closer to the end of 2018,” – said the head of the strategic investment and innovation in financial technology UBS Haider Jeffrey.
Blockchain technology is initially frightened banks that found it unreliable. However, after careful consideration, the financial companies are finding new ways of applying the blockchain to speed up calculations on a variety of operations.
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The transition to USC assumes that the parties to the transactions in securities will not wait until the transfer of traditional cash, instead they will use a cryptocurrency that can be exchanged for the usual money in the banks. This approach will reduce time and monetary costs, as well as the use of human resources.
A single cryptocurrency USC will be exchanged for a variety of traditional currency, depending on the needs of the parties to the transaction.