Blockchain, plan large banks to create their digital money – Expansion MX

LONDON (CNNMoney) –

A group of major international banks, UBS head, is planning to create its new version of digital money through technology blockchain (block chain) in which the bitcoin is based.

the Swiss bank announced on Wednesday 24 August that had allied with the German bank Deutsche bank, the Spanish Santander, the giant BNY investments Mellon and ICAP, the market operator to implement what they called “functional currency for settlements” (Utility Settlement coin, USC). His plan is to use the digital money to settle financial transactions through technology blockchain , which would prevent clearinghouses and intermediaries for settlements.

The group wants leverage a technology that could save a lot of money to the sector. Banks and other financial institutions spend between 65,000 million and 80,000 million dollars a year to authorize and settle transactions.

It would also make the process faster, as currently financial transactions take several days settled through clearinghouses. The use of technology blockchain allow financial transactions be settled in near real time, according to UBS.

The global banks and large financial institutions have tried to determine how to use the technology efficiently and safely.

Unlike bitcoin, USC is not a new currency that evades the central banks, according to UBS.

the bank said the idea is that each USC is backed directly by money deposited in a central bank and the equivalent of a dollar a pound or the currency in which the transaction is made.

the digital currency represents real money on the transaction and when is spent, the equivalent is spent on real currency.

“the cash is the basis of almost all operations, so this project is key to unlocking the benefits to the sector through technology automation of the distribution authorization, settlement and collateral management, “said Robert Sams, founder and CEO of Clearmatics, the technology company that developed the concept together with UBS.

Now, banks try to convince regulators to ensure that its technology has widespread use later.

“the goal is that this is an essential part of financial markets … has been developing for some time,” Sams said .

Blockchain , technology in which digital currencies, part of a public record of transactions are based. The entire network of users recognizes and verifies each transaction between two parties or block and then the string is added.

blockchain acts as a bank log and transparency hinders manipulation data.

The process has another advantage: using the verification system person to person, the blockchain not necessarily depend on the central banks

.