Daily Management Review

The largest banks are getting ready to introduce a new crypto currency


08/31/2017


Some 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 a new crypto currency. The technology of the distributed registry will be used to conduct instant settlements and clearing of transactions with securities, writes Financial Times.



Namecoin via flickr
Namecoin via flickr
In August last year, Swiss bank UBS together with Clearmatics Technologies created a new crypto currency, which was called utility settlement coin (USC). UBS has already been adopted by Deutsche Bank, Santander and BNY Mellon, as well as ICAP broker.

At that time, UBS planned to present ways of applying crypto currency to regulators and central banks for a year in order to get their approval and in early 2018 to start commercial use of it "in a limited number of low-risk operations" in order to increase efficiency and accelerate their final stages.

Now the project participants are trying to deepen the USC discussion with central banks and are working on additional measures to protect the new crypto currency.

"We are in discussions with central banks and regulators, and we will continue them in the next 12 months with a view to a limited launch near the end of 2018," said head of strategic investment and innovation in financial technologies at UBS Hyder Jaffrey.

The blockchain technology initially deterred banks, seeming unreliable. However, having thoroughly studed issue, financial companies are finding new ways to use the blockchain to accelerate calculations for a variety of transactions.

Introduction of USC assumes that parties of transactions with securities will not wait until the transfer of traditional funds happens. Instead, they will use the crypto currency, which can be exchanged for the usual money in central banks. This approach will reduce time and money costs, as well as the use of human resources.

The single USC crypto currency will then be exchanged for a variety of traditional currencies, depending on the needs of the participants in the transaction.

source: ft.com






Science & Technology

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

World Politics

World & Politics

Turkish President and CIA set to find Khashoggi's murderer

Saudi Explanation Of Khashoggi’s Death Criticised Internationally

Cyprus Cobalt Air stopped flights

Transparency International: Europe should stop selling citizenships

Turkey: We are not going to discuss borrowing from IMF anymore

Trump in your mobile phone: US is going to test Presidential Alert system

European automakers warn of consequences of tight emission controls

IATA: EU-UK flights can be cancelled due to Brexit disagreements