Process of Launching Digital Versions of Major Currencies in 2020 Gets Stalled
According to a report published by The New York Times on 9th September 2020, the process of launching the digital versions of major currencies in 2020, a joint effort of 13 of the world’s largest banks, has got stalled.
Based on the report, the technological initiative is named “Utility Settlement Coin”. Further development has got delayed due to a needful regulatory approval, the Chief Executive of Fnality International, Rhomaios Ram has said.
The project was first proposed in 2015 by the Swiss bank, UBS Group AG, and London-based blockchain R&D Company, Clearmatics.
Fnality, a company jointly created by Barclays Plc, Banco Santander, and Credit Suisse Group AG, stated that the project is expected to be commercialized by 2020.
With the look of things, putting the delay into consideration, the project cannot go live until the first quarter of 2021.
Banks Need A Third Party XRP to See the Project Through
Cory Johnson, a journalist and crypto influencer, who worked as a chief strategist at Ripple between 2018 and 2019, pointed out that the delay shows that banks need a third-party such as blockchain technology, referencing XRP’s suitability in making the major project a reality.
Reacting to the report published by The New York Times, Cory Johnson stated that “Banks can’t make these changes to themselves by themselves. They need a third party to help. XRP”
Banks can't make these changes to themselves by themselves. They need a third party to help. #XRP https://t.co/eJF5ji5nqH
— Cory Johnson (@CoryTV) September 9, 2020
The Project Seems To Be a Copy of XRP-Powered ODL
Ripple, the cross-border payment behemoth already has a form of the project jointly initiated by these major banks. The product named On-Demand Liquidity is powered by XRP and facilitated cryptocurrency exchanges such as Australia-based BTC Markets, Philippines-based Coins.ph, and Mexico-based Bitso.
The cryptocurrency exchanges accept fiat currency, move the equivalent in XRP across borders, and convert it back to fiat currency. The transaction speed using XRP will reduce the effect of market volatility.
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