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

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

Animals Can Burn Muscle To Supplement Body Water Needs, Finds A Study

The future of private flights at Farnborough air show

Experts Want To Fix Problem Of AI Hurting People Of Color And The Poor

New Study Claims Astrobiologists Locating Possible Life On Moon In Its Life Time

Wreck Of Russian Ship Rumoured To Have 5,500 Boxes Of Gold Found Near South Korean Island

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

World Politics

World & Politics

Venezuela comes up with a new monetary reform

Paris is losing its icon public bicycle sharing system

Heat wave in Europe creates problems for brewers

Is it legal to print a gun? US is discussing 3D printing of firearms

Southeast Asian Leaders To Seek Clarity Of US Policies For The Region Form Pompeo

The world economy is accumulating environmental debt

US To Invest $113 Million In Asia To Counter Chinese Influence

US Intelligence Detects New Activity At Its Missile ICBM Factory: Reports