World’s Top Banks Invests $63.1M on a Blockchain Digital Coin

Tripti Rai July 22, 2020
World’s Top Banks Invests $63.1M on a Blockchain Digital Coin

Some of the world’s top 14 banks in the USA, Japan, and Europe have recently invested a whopping amount of $63.1 million into a project run by Fnality International to build a Utility Settlement Coin (USC).

These banks, which includes various popular names like Barclays recently gained limelight for raising $55M for a blockchain-based invoice exchange system Crowdz, have made this decision in hope to cut down the third-party intermediaries and make the cross-border payment process smooth and cost-effective. And it seems that USC will go with their expectations.

Currently, when it comes to cross-border payments, the process is quite complex and tiresome. It goes through multiple steps involving foreign exchange market when dealing with different currencies, adding fees of third-parties, and more.

While there are various other organizations putting their best efforts into integrating Blockchain and Cryptocurrencies in Banking sector like JPMorgan introduced its coin – the JPMorgan Coin and Ripple planned to get into partnership with various reputed banks to make its XRP currency as an alternative payment mode – something that placed it in the list of cryptocurrency trends that would rule 2019 and beyond -,  USC is expected to bring drastic changes in the domain.

It is hoped to make the transaction process will be more streamlined, faster, and independent of the need to buy the destination currency.

The process will begin with Fnality setting up accounts for central banks and issuing them some USCs. These USCs, considered as a digital equivalent of major currencies, will be interchangeable with the real currencies in a one-to-one fashion.

So, when a user transfers money from, let’s say Japan to the USA, the Japanese bank will transfer the amount in yen to the central bank of the country. Fnality will then issue the same amount of USCs and deposit them into the American bank. The bank will send the equivalent proportion of dollars to the end client’s personal account.

In this way, the USCs – backed by the central banks – will help to mitigate the risk of price variation and thus, serve us with a stable way for interbank transfers.

And the best part, these USCs, unlike cryptocurrencies, won’t suffer from the risk of value fluctuations which will again make the cross-border transactions faster and effective. They will rely on Blockchain as a record-keeping software to prevent data frauds but will be completely associated with offering solutions supported by the Central banks and financial organizations that make the process more efficient.

With such a working process, the first Utility Settlement Coin is expected to hit the market by late 2020 – initially operating with U.S. Dollars, pounds, euros, Canadian dollars, and yen.

Let’s hope we come across many more of such announcements as Blockchain and Cryptocurrency Trends for 2019 and Beyond. And eventually, experience far streamlined banking experience.

THE AUTHOR
Tripti Rai
Content Manager
Prev PostNext Post
Read more blogs
blockchain platform to fight against coronavirus

Is Blockchain the Answer to Fighting Coronavirus Outbreak?

The victim-count of Coronavirus has increased to 28,276 while taking 565 lives already.  With the virus epidemic being on the verge of becoming pandemic, there is a cloud of concern hovering over not just the affected nations but also the rest of the entire world.  The grim picture of Coronavirus is not just of the…

Tripti Rai
Modern Android App Architecture with Dropbox Store

Modern Android App Architecture with Dropbox Store and JetPack

A few days ago, Dropbox acquired an open-source Store library. The aim behind taking the ownership was to modify it to make it more suitable to the prevailing Android developer ecosystem.  Now, Store also includes Google JetPack collection of libraries which poses as a solution for creating current-day Android apps. Google JetPack makes it possible…

Shivani Dubey
Google Acquires AppSheet, a No-Code Mobile App Development Platform

Google Acquires Appsheet, a No-code Mobile App Development Platform

Google recently announced that they have acquired AppSheet, a Seattle based no-code mobile app development platform. The terms of the acquisition have not been disclosed yet, but it has been revealed that AppSheet will continue to serve its existing customers.  AppSheet was founded back in 2014 by Praveen Seshadri and Brian Sabino to help businesspeople…

Bhupinder Kour
Mobile App Consulting Company on Clutch Most trusted Mobile App Consulting Company on Clutch
appinventiv India
HQ INDIA

B-25, Sector 58,
Noida- 201301,
Delhi - NCR, India

appinventiv USA
USA

79, Madison Ave
Manhattan, NY 10001,
USA

appinventiv Australia
Australia

Appinventiv Australia,
East Brisbane
QLD 4169, Australia

appinventiv UAE
UAE

Tiger Al Yarmook Building,
13th floor B-block
Al Nahda St - Sharjah

appinventiv Canada
CANADA

Suite 3810, Bankers Hall West,
888 - 3rd Street Sw
Calgary Alberta