Four top banks join forces on new digital currency

Four of U.S. and Europe’s largest banks have joined forces to work on a new digital currency system or digital-only cash system, which they expectation to launch in 2 years’ time.

Deutsche Bank and Santander, BNY Mellon, plus U.K. brokerage ICAP, will join UBS to work on the USC or Utility Settlement Coin, which they hope will be a faster and more efficient alternate to the current clearing and settlement method.

Forex new digital currency

The coin will be designed at banks’ institutional customers and will use block chain, the technology after bitcoin. Block chain workings like a vast, decentralized ledger, recording all transaction made with bitcoin, the world’s most commonly used pure digital currency system. Some financial institutions are involved in the broader applications of block chain technology.

On Wednesday said by Hyder Jaffrey in a media statement, “Digital currency is a basic component of an upcoming financial market fabric founded on block chain technologies”, UBS Investment Bank head of strategic investment and monetary technology invention.

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UBS says the USC could cut the difficulty and time taken to cutting risk, settle trades and improving capital proficiency for customers.

The coin’s success would trust on extensive implementation by financial institutions, so the contribution of Deutsche Bank and Santander, BNY Mellon may be a step in the correct direction for UBS.

Though, some other top banks are working on their individual digital-only payment systems, comprising Citi and Goldman Sachs.

In the intervening time, UBS is in discussion with regulators to regulate how the USC should function to get supervisory backing. The bank could then look to get more institutions intricate.

Current discussion of Forex digital currency by central banks and regulators has established their potential importance. The USC is an important step towards an upcoming financial market on distributed ledger technologies, said by Julio Faura, chief of research and development at Santander, in a media report.

The USC would be founded on cash assets, with versions accessible in major currencies, comprising the euro, U.S. dollar, sterling and Swiss franc, and would be adaptable at parity with a bank deposit. Visit daily please for latest forex currencies news.

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