A group of major global banks has teamed up on a new project based on blockchain technology, which looks to create a digital currency for financial transactions and clearing.
Other high profile banks engaged in the project include Credit Suisse, MUFG, and the Canadian Imperial Bank of Commerce. The project is advancing on a concept called the ‘utility settlement coin’ that was introduced by UBS.
The overarching goal of the project is to update and enhance the processes of the financial markets, making them work more efficiently by harnessing the cutting edge technology.
Momentum is building constantly in the development of blockchain technology, with widespread implementation now a realistic and targetable goal. The likes of Barclays, HSBC and Credit Suisse have been engaged for some time in honing the digital ledger technology.
A major breakthrough that has sparked an uptick in blockchain interest has been the change in attitude regarding the security of the blockchain. Initially concerns regarding fraud were off putting for financial services organisations, and organisations in other industries.
Blockchain excitement is currently at an all time high, and business leaders are now looking to the array of benefits that may be associated with bringing the new technology on board.
A recent Cognizant report found that 90% of financial services executives believe blockchain will be of critical importance to the future of their business, and 75% expect in excess of a 5% revenue increase.
Although many of the world’s largest and most influential global banks and organisations are hard at work to implement blockchain, widespread blockchain ubiquity is not expected to arrive soon. However, the Head of strategic Investments and Innovation at UBS Investment Bank, Hyder Jaffrey previously said that significant use cases could be expected in around 18 months to two years.