You may have heard of the banking giant Wells Fargo. Well this week, they have said that its blockchain for internal cross-border money transfers is actually quicker and more efficient than the international messaging system (and potential rival to xRapid), SWIFT.
So as we say, this news was announced this week in which Wells Fargo Digital Cash utilises R3’s Corda Enterprise software to handle internal book transfers when funds move from a payer’s account to a payee’s account at the same bank.
Head of the Innovation Group at Wells Fargo, Lisa Frazier said:
“When we move money across the world and we need to exchange currencies, we have to go through third parties such as SWIFT and other banks. That’s a long process and every time there’s a connection with external parties, it takes time and energy and effort.”
The bank would be able to move finances 20 hours a day, granted that they use digital cash. This is a big increase from only six to nine hours, on working days when it depends on wire transfers and systems like SWIFT.
“It’s faster than SWIFT, cheaper and definitely more efficient.”
Now, for internal book transfers between branches in different nations, Wells Fargo will need to use SWIFT the best they can.
The project is set to go into its pilot phase in 2020 after the proof-of-concept is a success. Fraizer said that the blockchain project, “will allow those locations to exchange digital cash among themselves.”
So with rival megabank, JPMorgan’s JPM Coin, Wells Fargo's Stablecoin is to supposedly be backed 1:1 with the analogue kind.
Fraizer said, “We will hold the fiat currency, so it’s a stablecoin, and we will issue digital cash tokens. These tokens are placed into digital wallets and then those tokens are able to be exchanged.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!