Six major banks join force to create a new digital currency

Six major banks join force to create a new digital currency

Six of the world’s largest banks have become involved in a project to create a new form of digital money, which they hope to launch next year for clearing and finalizing financial transactions using blocking technology.

According to the Financial Times (FT), six of the world’s biggest banks – MUFG, Credit Suisse, Barclays,  HSBC, Canadian Imperial Bank of Commerce and State Street – have teamed up to develop a new digital currency called “Utility Settlement Coin (USC), which was originally created by the Swiss bank UBS to improve the efficiency of financial markets.

Now the project is moving to a new level – the participating banks of the project deepen cooperation with central banks, improve the system of data protection and cybersecurity.

UBS reports that negotiations with central banks and other regulators will continue for the next 12 months, and the launch of the crypto currency is planned for the end of 2018.

According to the developers, the USC’s crypto currency will allow financial groups to pay for the purchase of securities, such as bonds and shares, without waiting for the processing of traditional remittances.

Instead, for such transactions it will be possible to use digital coins convertible into cash in central banks, which significantly reduces the time and costs for post-trading settlement and clearing.

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