(Reuters) – Wells Fargo & Co (WFC.N) said on Tuesday it will be the number of a digital currency, powered by the blockchain, to help move the money across borders and between the different modes in real-time.
FILE PHOTO: A Wells Fargo logo can be seen on the SIBOS banking and finance conference to be held in the city of Toronto, province of Ontario, Canada, on October 19, 2017. The photo was taken on October 19, 2017. REUTERS/Chris Helgren/File Photo
The coin, a so-called Wells Fargo, Digital Cash, and will be linked to the US dollar, and is transferred to the bank’s distributed ledger technology to keep track of the payments made are within the internal network.
It is a system which will enable the bank to bypass a third party for the transfer of the assets of a process-saving time and costs, said Lisa Frazier, chief Innovation Group at Wells Fargo.
“We have to eliminate the middlemen, who often extend the timeline to to be able to do cross-border money transfers,” she said.
The fourth-largest U.S. bank’s corporate clients do not have to make any changes to the way they interact with the bank, because the currency will not be client-facing.
The pilot program will begin early next year, however, the bank has set up the technology being tested by the moving of money between Canada and the United States of america. Following the wider roll-out, the company hopes to expand it to a multi-currency.
While Wells Fargo executives were optimistic about the potential of blockchain technology in the financial services industry, the company has been more skeptical of cryptocurrencies like bitcoin is that it is the beginning of the system to be in the spotlight.
Last year, Wells Fargo joined with the U.S. rival in a ban on the purchase of a Bitcoin is by means of credit card customers, due to the volatility of the investment.
Blockchain technology has attracted billions of dollars in investment, banking and other businesses, and concerns about the implementation and performance is hampered a lot of blockchain projects to date.
In the beginning of the roadblocks have not stopped the banks from experimenting aggressively in the area. In February, JPMorgan Chase & Co (JPM.N) has started his own digital currency, linked to the U.S. dollar, which makes it possible for corporate clients to transfer funds directly into the internal blockchain network.
Reporting by Imani Moise; Editing by Lisa Shumaker