DLT: Cryptocurrency from Wells Fargo

[CryptoBry]

Just last month, Wells Fargo & Company made known to the public its plan to launch its own centralized or bank-controlled cryptocurrency (yes, some will argue that this is not cryptocurrency at all) using smart contracts and backed by fiat money, that will cater primarily with its global network transactions.

The bank’s international locations would be able to exchange Wells Fargo Digital Cash among their global network enabling the internal book transfers of cross border payments.  The bank has already tested the transfers between US and Canadian accounts using the USD.

Lisa Frazier, head of Innovation Group at Wells Fargo stated, “We believe that DLT holds the promise for different use cases, and we are energized to take a significant step when it comes to applying the technology to banking in a scalable and material way.

This company is following the steps taken by JP Morgan with the introduction of its JPM Coin which was a pioneering move in the banking industry. Now, we might be seeing some big banks or maybe a conglomerate of banks to do the same because they are now recognizing the innovation in making transactions faster and in settling business much safer and just better.

I know these coins can not be on the same level as that of Bitcoin or Eth but this development is a confirmation of the paradigm shift in the world of finance and banking which started when the blockchain technology and Bitcoin came into this world.

Can we say that this is a good development, nonetheless?

[Katashi]

Can we say that this is a good development, nonetheless?

It could have some good impact in crypto industry knowing the fact that a well-known bank is now adopting the new technology we have in cryptoworld but it will be better if they include and support Bitcoin or other top altcoins like Ethereum to be accepted on their financial system and for sure it will encourage more people to use cryptocurrency.

[rosezionjohn]

Can we say that this is a good development, nonetheless?

Good development for blockchain technology? Yes.
Good development for cryptocurrency? No.

I think the best people to ask that question are the army of XRP. They have been advertising that coin as the cryptocurrency to be used by banks. Let's hear what they have to say now.

[o48o]

*snip*
Can we say that this is a good development, nonetheless?

Article doesn't go to details on the tech but it could be that we soon need another highly liquid stablecoin depending on how that new 1,4 trillion dollars Tether/Bitfinex lawsuit pans out. I don't see that affecting negatively to cryptos in anyway because that's just another form for fiat currency, and you can't even compare it to them.

[magneto]

Just last month, Wells Fargo & Company made known to the public its plan to launch its own centralized or bank-controlled cryptocurrency (yes, some will argue that this is not cryptocurrency at all) using smart contracts and backed by fiat money, that will cater primarily with its global network transactions.

The bank’s international locations would be able to exchange Wells Fargo Digital Cash among their global network enabling the internal book transfers of cross border payments.  The bank has already tested the transfers between US and Canadian accounts using the USD.

Lisa Frazier, head of Innovation Group at Wells Fargo stated, “We believe that DLT holds the promise for different use cases, and we are energized to take a significant step when it comes to applying the technology to banking in a scalable and material way.

This company is following the steps taken by JP Morgan with the introduction of its JPM Coin which was a pioneering move in the banking industry. Now, we might be seeing some big banks or maybe a conglomerate of banks to do the same because they are now recognizing the innovation in making transactions faster and in settling business much safer and just better.

I know these coins can not be on the same level as that of Bitcoin or Eth but this development is a confirmation of the paradigm shift in the world of finance and banking which started when the blockchain technology and Bitcoin came into this world.

Can we say that this is a good development, nonetheless?

I remain indifferent to these incarnations of cryptos in the form of privately owned blockchains. They are completely centralised, and their sole purpose is to further the goals of the firm rather than trying to address any global issue.

JPMCoin or DLT aren't necessarily bad things, though. They improve the internal structure of their respective companies, and provides probably a funding buzz for them as well from international investors.

It's important to remember that these investment firms probably don't actually believe in decentralisation whatsoever. All they see is an opportunity to further their own profits through the invention of these tokens. It's an entirely different agenda.

[BigBoy89]

Like every big corporation, Wells Fargo is going after expense cut.

IMO JP, Wells Fargo and others are launching their own cryptocurrencies just to get the advantages of the blockchain as a technology and cut costs. They are not after popularizing crypto or anything like this. I count it as a good development just because it's media noise on the subject.

[ChrisPop]

I do believe that this is a great signal that the infrastructure for cryptocurrencies is actually being built in the financial institutions and that the value of the blockchain technology and the associated currencies is promoted by famous brands in the world like Wells Fargo and JP Morgan.

Nevertheless, I don't believe in cryptocurrencies issued by a central authority like a bank. These are similar to cash, but issued virtually.. Bitcoin on the other side is a decentralized beast whose value is given by the people and its use. Satoshi knew what he was creating.