FT: 10 largest banks in the world are working on creating a cryptocurrency

MOSCOW, August 31. /TASS/. Six major international banks – Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street – has joined the project to develop a digital currency that they expect to introduce next year for calculation and clearing of financial transactions. It is reported by The Financial Times.

“Today is a distributed registry (blockchain – approx. TASS) – one of the most innovative technologies. We see several benefits from this project – from risk reduction to improve the efficiency of use of capital in the financial markets,” – said Whether the brain of the technology Directorate in the investment banking division of Barclays.

Over their own cryptocurrency, which began to develop UBS also run Deutsche Bank, Santander, BNY Mellon and brokerage ICAP. Osanazuma utility settlement coin (practical money to pay) and uses the technology of block chain or distributed registry. Banks also are negotiating with the Central banks and regulators, and during the 2018 plan to negotiate with them about the interaction, to the end of the year to launch its first operations with cryptocurrency.

As told The Financial Times the Director of financial and technological innovation UBS Haider Jeffrey, introduction of technology will take place in several stages. The first step to be implemented by the end of 2018, will be making payments in different currencies between banks. He also noted that the introduction of technology in the securities is more difficult to implement, as this them to be in the blockchain, otherwise the benefit of saving time and reducing capital for redundancy will not work.

The technology of the blockchain is based on structuring the transaction, in blocks – structures for the records of the transactions in the system. To the transaction is considered valid, it must be mathematically “confirm”, after which the group of transactions is written to the block. The main feature of the blockchain immutability: posted information about the transaction can neither delete nor edit, since even the smallest edit requires huge computational resources.