The launch of the Utility Settlement Coin (USC) project, supported by major commercial banks, is being postponed until 2021, pending regulatory approval.
In June last year, Barclays, Banco Santander, Credit Suisse Group AG and ten other major banks in the world announced an investment of $63 million in the Utility Settlement Coin project. USC project partners became the founding shareholders of a new firm representing the commercial implementation of the project and named Fnality International.
As previously reported, the USC platform aims to facilitate the issuance of blockchain-based currencies by commercial and Central banks around the world. It was planned that the issue of digital currencies will be launched this year. However, the project was postponed until at least 2021.
The project called Fnality was developed by the Swiss investment Bank UBS Group AG. The company managed to attract other banks to develop the initiative, because all of them will benefit from achieving the ultimate goal: faster and cheaper payments.
Settlements are often a time-consuming process by which financial institutions clear transactions so that all participants in the payment system receive the money they are owed. This essentially involves transferring money from the buyer’s account to the seller’s account, minus fees for credit card operators and banks.
Originally known as Utility Settlement Coin, the Fnality project was supposed to make the whole process much easier and faster.
Specific project details and regulatory requirements are still being worked out. According to the publication
Reuters, Fnality International chief Executive Rhomaios Ram is awaiting regulatory approval in early 2021. The delay is probably due to the fact that many Central banks are now studying the concept of state-owned cryptocurrencies.
Recently, the Dutch non-profit organization dGen stated
in its report, three or more States will replace their Fiat currencies with digital ones by 2030. DGen does not make precise assumptions about which countries will make this transition by 2030, but notes significant progress in the development of state-owned cryptocurrencies in the Bahamas and Sweden. We also recall that China recently began testing payments in digital yuan for large commercial transactions.