4 major banks are going to launch its own cryptocurrency
4 large banks with a worldwide reputation thinking about creating a cryptocurrency which will provide instant payments within the system. New digital currency will be based on the technology of blockchain, in fact, will repeat the fate of bitcoin. The feasibility of this idea is questionable, since the bitcoin doesn’t meet the expectations of investors investors and other cryptocurrencies, and is listed at minimum values.
The creation of cryptocurrencies, what will benefit banks
The creation of a cryptocurrency is planned with the following participants:
- Swiss Bank UBS;
- Spanish Bank Santander;
- German Deutsche Bank;
- American Bank of New York;
- brokerage company ICAP.
It is assumed that all permissions will be received in 2017, and in 2018 the creation of a cryptocurrency will be completed and will start its practical use. According to analysts, this idea is not so strange as it seems at first glance. After all existing cryptocurrencies are used as the investment asset (speculative tool) with the goal of making a profit. In this case we are talking about simplification of payments between banks.
The exchange of information and transactions between banks (including clearing) complex and time consuming, not to mention the technological expenses. Therefore to reduce the cost of data transfer process and the creation of cryptocurrency. According to statistics, the global market for clearing services is 65-80 billion dollars per year. Digital currencies are protected by the mechanism of emission and do not require so serious protection of data transmission channels, as in the case of the classical transfer of funds, which makes them very profitable instrument transactions.
Other financial institutions are also thinking about creating its own cryptocurrency. In particular, Citigroup is going to run Citicoin, Goldman Sachs — SETLcoin. The blockchain is a distributed database that contains information on all executed transactions, the registry contains all the system participants.