All aboard for digital cash

It’s very encouraging to read that six big lenders have joined a project to create a new form of digital cash.

The project is said to be launched next year for clearing and settling financial transactions over blockchain technology.

The Financial Times reported that Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street have teamed up to work on the utility settlement coin, which was created by Switzerland’s UBS to make financial markets more efficient.

The utility settlement coin, based on a product developed by Clearmatics Technologies, reportedly aims to let financial groups pay each other or to buy securities, such as bonds and equities, without waiting for traditional money transfers to be completed.

Instead, it is said financial groups would use digital coins that are directly convertible into cash at central banks, cutting the time, cost, and capital required in post-trade settlement and clearing.

Let’s do everything we can to encourage the digital cash project because it’s the future!