Four of the world's largest banks have entered into an alliance to create a new electronic currency, which is expected to revolutionize the world of e-commerce, trade settlements in the world, leapfrog the world of money transfer and reduce conventional currency trading in the world.
The new electronic currency is expected to be a major blow to the currency of Btkwin, which is increasingly on the Internet and in e-commerce, while the new currency may enjoy a higher degree of confidence and security and "clear criteria for use in business adjustments," according to The Financial Times reported in a report.
The four banks that formed the alliance to issue the new electronic currency, the new Swiss World Bank (UBS), Deutsche Bank Germany, and the bank, "Santander" British, in addition to the US bank giant (BNY Mellon). The four allied banks plan to launch the currency in early 2018, less than two years from now, the Financial Times says.
The new move comes as a concrete example of banking cooperation in the field of technology called blockchain in particular, which will lead to the formation of a "central force in the field of computer networks among these banks," and thus develop the effectiveness of the market.
"Today's trade between banks and financial institutions is difficult, it takes time and costs a lot of money, so we all have large back offices working," said Giulio Furra, director of innovation at Santander. "The new project will simplify the matter And make it more effective. "
The Blockchain technology, which will be used by the four banks to issue their currency, is a set of algorithms that allow the issuance of "encrypted currency" such as "configuration" or other, to be used in electronic commerce and electronic trading transactions, Can be verified electronically and do not require accounting books or human reviews when settling financial transactions.
It is believed that electronic currency can reduce the huge office and accounting operations carried out by banks in the world, which can reduce the cost of banking services, and thus increase the profits of banks and the cost of services to customers.
A report by Oliver Wyman last year showed that the cost of financial and commercial adjustments made by banks on a daily basis around the world ranges from $ 65-80 billion a year.
