Six big banks join blockchain digital cash settlement project
ZURICH: Six new banks have joined a UBS-led effort to create a digital cash system that would allow financial markets to make payments and settle transactions quickly via blockchain technology.
The group aims to launch the system late next year.
Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street have joined the group developing the “utility settlement coin” (USC), a digital cash equivalent of each of the major currencies backed by central banks, UBS said on Thursday.
The group is in discussions with central banks and regulators and is aiming for a “limited ’go live’” in the latter part of 2018, UBS’s head of strategic investment and fintech innovation told the Financial Times.
The Swiss bank first launched the concept in September 2015 with London-based blockchain company Clearmatics, and was later joined on the project by BNY Mellon, Deutsche Bank, Santander and brokerage ICAP.
The USC would be convertible at parity with a bank deposit in the corresponding currency, making it fully backed by cash assets at a central bank. Spending a USC would be the same as spending the real currency it is paired with.
Blockchain works as a tamperproof shared ledger that can automatically process and settle transactions using computer algorithms, with no need for thirdparty verification.
Because it does not require manual processing, nor authentication through intermediaries, the technology can make payments faster, more reliable and easier to audit. — Reuters
While Geely is more popularly known for its successful acquisition of Volvo, the ability of Geely to assist Proton from technical and marketing perspective as well as to penetrate new markets remains a concern given that Geely is also a relatively weak brand from a global perspective with a global market share of less than five per cent. Kenanga Research
In a report, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) said, “While Geely is more popularly known for its successful acquisition of Volvo, the ability of Geely to assist Proton from technical and marketing perspective as well as to penetrate new markets remains a concern given that Geely is also a relatively weak brand from a global perspective with a global market share of less than five per cent.
“Proton still has to deal with the challenges posed by increasing competition and a weak brand perception.
“The outlook for DRB remains challenging given the tough operating environment of lower sales of motor vehicles amidst stiff competition.” Turn to Page B2, Col 4