The ambitious project, set up by the world’s thirteen largest banks with the goal of creating a digital currency called the “Utility Settlement Coin” (USC), seems not to be released this year.
Launch Shifted to First Quarter of 2021
Rhomaios Ram, head of Fnality International, the company responsible for the project, explained the reason for the delay.
The problem, according to Ram, is that the “Utility Settlement Coin” has not yet received the necessary approvals from regulators. The project creators hope that this approval will be made in the first quarter of next year.
Digital Versions of Top Global Currencies
The project group consists of thirteen major banks in the USA, Europe and Japan. Initially managed by UBS Group AG, now the group has appointed Fnality International as the creator of the digital currency.
The aim was to create an innovative way for banks to handle their financial transactions; which was basically in line with the goal set by Ripple decacorn, but Ripple also works in the remittance industry.
In June last year, Fnality International raised $ 63.2 million from multiple banks to create USC.
According to the company’s website, the “Utility Settlement Coin” will be a blockchain-based peer-to-peer currency, with several major global fiat currencies in its basket.
The initiative was recognized as the Utility Settlement Coin (USC) project with a core purpose; this goal was to create a peer-to-peer digital cash asset for tokenized transactions. The company is currently working on digital versions of the Euro, Japanese Yen, USD, CAD and GBP.
Similar Project Under Development
The well-known cryptocurrency project called LIBRA, launched by Facebook and Libra and announced in early 2019, also followed the goal of creating a digital currency backed by a basket of fiat currency from several leading global economies.
But Libra faced a similar hurdle with the USC in question: a lack of regulatory approval. LIBRA has been heavily criticized after Mark Zuckerberg testified before the US Congress, and the currency is seen as a threat to the US dollar.
Since then, the Libra team has been looking for ways to comply with all the requirements it faces.
The Necessity of Digital USD Appears in a Short Time
Many thought leaders in the finance and cryptocurrency industry, such as Anthony Pompliano, have voiced many times the global need for a digital version of the USD to emerge. Now China is running on the digital version of the yuan called DCEP (digital currency).
Experts believe that if China launches DCEP first and then comes out a digitized USD, the US could lose its leadership in China in both digital and finance.
As if taking all these factors into account; In June of this year, the US Federal Reserve began to examine DLT and digital currency fields.