Friday, 1 September 2017

On 00:14 by admin   No comments
Six of the world's leading banks joined the project of a new form of digital currency for payments to financial institutions through blockchain technology, a database that is used in cryptography as an accounting book. Currently, talks with central banks are under way, and the new currency should be brought to "circulation" by the end of next year.

The Bank of Bankers Commerce, HSBC, MUFG and State Street have also joined the UBS Swiss bank project to increase the efficiency of financial markets. Deutsche Bank, Banco Santander, BNY Mellon and NEX are already participating.

The cryptographic project called USC (Settlement Coin), which originated in September 2015, has now reached the next development phase. Project participants stepped up consultations with central banks and work on cyber security and privacy.

"We are negotiating with the central banks and the regulators, and the next 12 months will be to continue the negotiations to launch the project in the end of 2018," said UBS chief for innovation and strategic planning, Hyder Jaffrey.

Blockchain technology, which is a complex algorithm system, allows stores with so-called cryptogenaes and their electronic verification via a computer network without the existence of a central accounting book.

USC can be exchanged

Banks were beginning to look at this technology with mistrust as they were afraid of fraud. They are now exploring how they can use it to speed up billing payment systems. Developed by the USC cryptographer, Clematics Technologies, a London-based technology company, was involved.
The new digital currency has financial groups to facilitate the purchase of securities without having to wait to complete standard cash transfers. The use of cryptomena directly convertible to cash is faster and capital less demanding. USC will be available for a range of currencies.
Jaffrey noted that there would be no "big bang" but gradual development. The project assumes that in the first phase, from the end of next year, the USC will use banks for mutual payments in different currencies. Before it can engage in securities trading, the system of these trades will also have to be converted to blockchain technology, otherwise the benefit of higher speeds and lower costs would not be reflected.

Competition for bitcoins?

However, the head of UBS has not ruled out that a new cryptomania could become a payer even for ordinary users. In such a case, it would be a direct competition for the popular bitcoons that had already begun in 2009. However, more popularity has been enjoyed in recent years.
Cybernetic coins "shuffle" a network of computers with specialized software programmed to release new coins with a steady but still declining pace. The number of coins in circulation is about to reach 21 million, around 2140.

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