4 Global Banks To Launch A Bitcoin Like Cryptocurrency

It sounds pretty unusual to hear that even the banks are taking a deep interest in decentralized digital currencies like bitcoin. We all know that the banks follow a centralized chain and they were never supposed to be in favor of the decentralization. In fact, when bitcoin came into existence, there were countless debates regarding whether one should support the decentralization of money or not. But the time has flown so quickly and the world has been more affable to the digital money than ever before.

The banks are no exception. It’s only a matter of time that the banks who have been ridiculing the use of bitcoin at some point in time are stunned by the elegance of bitcoin and its underlying technology. Four global banks have confirmed that they will be launching their own bitcoin like digital token, leveraging the technology behind bitcoin (Blockchain) by the year 2018. The cryptocurrency which is initially titled, “Utility Settlement Coin” is a joint venture of four banks viz. Santander, Union Bank of Switzerland, BNY Mellon and Deutsche Bank. All these banks are the active members of R3 consortium, a lead blockchain firm that empowers the use of Blockchain Technology.

 Also read Big Four To Form Their Own Blockchain Consortium.

Is It Really a Bitcoin Alternative?

Although this new digital coin is termed as Altcoin which means bitcoin alternative, it isn’t very much the same. There are many differences between the two. The sources reveal that the new coin might be running over a closed network managed by the banks which would apparently hamper it from attaining its full potential. This also means that the coin will be run and managed by a group of banks. Then what’s the point of calling it decentralized?

Also, the coin will not follow the Peer-to-Peer functionality which means it won’t be controlled by the individuals. The value of the coin will also be fixed unlike bitcoin and all the other cryptocurrencies whose price keep on fluctuating all the time. The main goal of the Utility Settlement Coin is to foster the internet banking experience of the bank users. The only thing that is common between this coin and bitcoin is that it would be using the same digital ledger called blockchain but only for internal usage. However, we don’t have a final statement on that yet. So it would be a little too early to make a judgment.

 MUFG Coin, A Similar Endeavor of Japanese banks

MUFG Coin. You might have come across this term several times if you have been reading the latest news and happenings in the cryptocurrency landscape. But in case you haven’t, we’ll let you know what it’s all about.

MUFG Coin is also an upcoming cryptocurrency for the Japanese citizens which is being developed by the largest bank of Japan. The project is initiated by Bank of Tokyo - Mitsubishi and UFJ financial group. The coin is scheduled for an autumn launch next year. As a matter of fact, the Mitsubishi UFJ group is also a member of R3 consortium. Not much has been revealed about this coin yet but it is a clear indication of surging interest of banks in cryptocurrencies. For all one knows, it isn’t just about Bank of Tokyo, Mitsubishi UFJ Group or the four banks we mentioned above. There are many other banks that are coming up with similar cryptocurrency projects including Barclays, Citibank and BBVA.