Just last month, Wells Fargo & Company made known to the public its plan to launch its own centralized or bank-controlled cryptocurrency (yes, some will argue that this is not cryptocurrency at all) using smart contracts and backed by fiat money, that will cater primarily with its global network transactions.
The bank’s international locations would be able to exchange Wells Fargo Digital Cash among their global network enabling the internal book transfers of cross border payments. The bank has already tested the transfers between US and Canadian accounts using the USD.
Lisa Frazier, head of
Innovation Group at Wells Fargo stated, “We believe that DLT holds the promise for different use cases, and we are energized to take a significant step when it comes to applying the technology to banking in a scalable and material way.
This company is following the steps taken by JP Morgan with the introduction of its
JPM Coin which was a pioneering move in the banking industry. Now, we might be seeing some big banks or maybe a conglomerate of banks to do the same because they are now recognizing the innovation in making transactions faster and in settling business much safer and just better.
I know these coins can not be on the same level as that of Bitcoin or Eth but this development is a confirmation of the paradigm shift in the world of finance and banking which started when the blockchain technology and Bitcoin came into this world.
Can we say that this is a good development, nonetheless?
