Six big banks to produce a blockchain-based cash system brought by UBS

Six new banks have became a member of a UBS-brought effort to produce a digital cash system that will allow markets to create payments and settle transactions rapidly via blockchain technology.

T

he group aims to produce the machine late the coming year.

Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and Condition Street have became a member of the audience developing the “utility settlement coin” (USC), an electronic cash same as each one of the major currencies supported by central banks, UBS stated on Thursday.

The audience is within discussions with central banks and regulators and it is targeting a “limited ’go live’” within the latter a part of 2018, UBS’s mind of proper investment and fintech innovation told the Financial Occasions.

The Swiss bank first launched the idea in September 2015 with London-based blockchain company Clearmatics, and it was later became a member of around the project by BNY Mellon, Deutsche Bank, Santander and brokerage ICAP.

The USC could be convertible at parity having a bank deposit within the corresponding currency, which makes it fully supported by cash assets in a central bank.

Spending a USC will be the just like spending the actual currency it’s combined with.

Blockchain functions as a tamper-proof shared ledger that may instantly process and settle transactions using computer algorithms, without necessity for third-party verification.

Because it doesn’t require manual processing, nor authentication through intermediaries, we’ve got the technology could make payments faster, more reliable and simpler to audit.

Reuters

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