According to Bloomberg, a group of eight international banks – including Goldman Sachs Group, Deutsche Bank, Bank of America, Citigroup, Banco Santander, UBS, BNP Paribas, MUFG Bank, and TD Bank – announced a joint initiative to study the issuance of digital money based on public blockchain networks. The banks released a corresponding joint statement.
The initiative aims to create a digital currency pegged 1:1 to the major currencies of the G7 countries and backed by their reserves. The participants envision this asset as a stable payment instrument available for use on open blockchains.
The consortium noted that it is in contact with regulators and supervisory authorities in relevant jurisdictions. The banks are currently assessing whether this new form of digital money could increase competition in the financial market and bridge the advantages of traditional finance and blockchain technology.
Interest from the world’s largest banks in issuing digital money has intensified amid growing attention to stablecoins. Although such assets are primarily used in the crypto sector today, financial corporations see potential in them to make payments faster and cheaper compared to traditional transfer systems.
Bank activity in this area is largely driven by new regulatory developments in the United States and the European Union. Legislative initiatives in these regions have created clearer frameworks for the circulation of digital assets, enabling major financial institutions to begin developing their own blockchain-based solutions.
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