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One of America’s biggest banking companies, Wells Fargo, announced on Tuesday that it plans to enter the crypto world after all. Like JPMorgan, Wells Fargo is looking to create its own native digital coin that would function just like any other digital asset out there.
Only in this case, the financial giant is looking to test the waters with its global network. Should all go as planned, this may extend to the general public.
Wells Fargo’s Crypto Plan
According to a rather in-depth press release, the banking firm revealed that it plans to leverage the untold potential of distributed ledger technology to create a crypto coin that would be backed by the dollar.
The crypto coin, named Wells Fargo Digital Cash (at least for now), will serve as a safe and secure means to move money across Wells Fargo’s global network. With 7,600 locations, scattered across 32 countries and over 260,000 team members, it can certainly be a great step forward for the firm.
Wells Fargo Digital Cash is expected to help move money across this large network without having to involve third parties or spend more due to international transaction fees and costs. With a simple wallet, like other crypto coins, Wells Fargo Digital Cash can be transferred in real time.
Besides being fast and secure, this new system of transferring funds will also cause no negative impact on the underlying account, transaction postings or the existing reconciliation infrastructure. If anything, it will greatly expedite internal settlement across the global network.
As a frontier in the global financial world, Wells Fargo constantly seeks to help making transaction easy for the average client. This project will be just the right step in the right direction as it will greatly help to ease up cross-border payments, and reduce the cost too.
Reducing Cross-Border Friction via Crypto
Wells Fargo’s head of the Innovation Group, Lisa Frazier, affirmed that the banking firm has concluded that the “traditional borders” of the world have been eroded and there is a technological capability of minimizing friction associated with that. She also added:
“We believe DLT holds promise for a variety of use cases, and we’re energized to take this significant step in applying the technology to banking in a material and scalable way. Wells Fargo Digital Cash has the potential to enable Wells Fargo to remove barriers to real-time financial interactions across multiple accounts in multiple marketplaces around the world.”
Wells Fargo Digital Cash is planned to launch next year and we are pumped, waiting to see how it unfolds.