Could banks create their own CryptoCurrency to end Bitcoin?

The world's largest banks create their own Cryptocurrency to compete with bitcoin.

Since Bitcoin's opening, many financial institutions have tried to launch their own initiatives to compete with this criptomoneda. While in many cases they have sought to save costs for their internal structures rather than disruptive lines of business models.

One of the best known is R3CEV consortium, which has been built a new operating system for financial markets with our distributed ledger platform Corda. This financial consortium was born at the end of 2015 by nine major banks. They have developed their own platform, Corda.

Today it has become the largest of its kind, with more than 70 global companies among its members. However, one year after the consortium appeared, some of their members abandoned it, like Goldman Sachs, one of its founding members, in addition to Morgan Stanley and Santander in the same week at the end of 2016. Now there are launching some proof of concepts using their Blockchain platform and have carried out several successful trials of a different nature with his partners. But no one know the future of this consortium.

More recently, in August 2017, the more major banks have joined UBS-led Blockchain project. Barclays, Credit Suisse, Canadian Imperial Bank of Commerce (CIBC), HSBC, MUFG Bank and State Street Bank, six of the world's largest financial institutions, have joined forces to create a digital currency based on Blockchain technology to represent and transactionality of real assets and on which other cryptos are based such as bitcoin.

The project, called the 'Utility Settlement Coin' (USC), aimed at promoting the use of digital money, was initially promoted (August 2016) by Swiss bank UBS together with Santander, BNY Mellon and Deutsche Bank. Their goal was to make financial markets more efficient and reduce the risks of the sector.

Thus, in addition to the four-bank conglomerate headed by UBS for the creation of a digital currency, six other banks have now joined the initiative to create their own currency.

Members of both groups of entities involved in the development of their digital currency have indicated that they seek to deepen discussions with central banks and other regulatory authorities in order to clearly define data protection and cyber security policies.

Members of this new consortium have said that they expects that by the end of 2018 it will be possible to make interbank transfers of up to 100 million dollars to a foreign entity practically instantly through this new method.

At this point, we can only wait to see if it is another bank initiative that will take months or years to launch real projects to compete with Bitcoin, or if it ends up becoming a weapon to lobby the regulators. Time will tell.

Do you think banks will compete sometime with Bitcoin and Ethereum? Tell us your opinion.

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