MILAN – Four largest banks globally – UBS, Deutsche Bank, Santander and Bank of New York Mellon – have joined forces to develop a new form of digital currency in the belief that it can become a standard for the industry, leveraging the architecture of blockchain, the technology on which the circulation of the Bitcoin virtual currency. As reported by the Financial Times , the idea came from UBS, which has also joined forces with three other banks and with Icap broker, and will now be presented to the central banks, with the aim of reaching a first commercalizzazione early 2018. It is one of the most concrete example of collaboration between banks to reduce costs and improve the efficiency of an initiative on digital currencies. “Today the exchanges between banks and institutions are difficult, expensive in terms of cost and time lost. The question is to streamline the process and make it more efficient,” said Julio Faura, responsible for innovation, research and development for Santander. Business & amp; Finance. The bet of large financial institutions The blockchain technology allows cryptocurrency to be exchanged with a “validation” by operators scattered across the network, without the existence of a central brain to command the structure. Before opposed to fears of fraud, banks have also familiarized with the concept and we have seen a business opportunity. Also because the cost of managing transactions between banks is estimated up to 80 billion dollars a year, and screw it would not hurt. Thank blockchain, reduce dramatically the time required to close the exchange of securities, avoiding the wait for the passage of money and using rather the virtual money – converted into real money at central banks – to settle their debts. The costs of clearing and post-trading would therefore be deleted. How does the platform
- Topics:
- blockchain
- bitcoin
- banks
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