Financial Giant Plans To Launch Wells Fargo Digital Cash; Internal Settlement Service On DLT
Remember when Wells Fargo froze users’ accounts who bought cryptocurrency using their money? Well, the financial giant is now ready to launch its own digital asset dubbed, Wells Fargo Digital Cash.
It is an internal settlement service that will run and power the company’s decentralized ledger technology (DLT) platform to “complete internal book transfers of cross-border payments within its global network.”
Wells Fargo finally turns to blockchain
Following multiple attempts to shut down blockchain and associated cryptocurrencies, Wells Fargo finally integrated the decentralized and trustless platform in a bid to reduce transaction times and increase security of global transactions.
In a press release on the launch of the Wells Fargo Digital Cash, the head of innovation group at Wells Fargo, Lisa Frazier, praised the company’s move towards DLT and hopes for a reduction of “friction regarding traditional borders.” She further commented,
“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.”
The blockchain allows international partners to transfer funds at any time, cuts out the middleman which saves time and fees of transaction.
How similar is Wells Fargo Digital Cash to JPM Coin?
In the past week, JP Morgan announced they had added over 320 banks to its network including the Deutsche Bank and are in the process of launching their JPM Coin.
While obvious parallels can be drawn between the two projects, Wells Fargo spokesman, Roger Cabrera, confirmed that the bank’s token is a standalone project – not connected to any project. He said,
“Regarding JPM Coin, Wells Fargo Digital Cash runs on a proprietary internal DLT network that is not connected to any other digital cash solutions.”
Furthermore, while the JP Morgan network is built on the Quorum platform, Wells Fargo DLT is built on R3 Corda enterprise version. Cabrera further said,
“[R3 Corda Enterprise] is a distributed ledger solution that allows for appropriate data confidentiality controls, scales to bank transaction volumes and throughput, and supports an information security design that is compatible with Wells Fargo’s industry regulated standards.”
The platform is expected to be launched in 2020 and is expected to complete USD transfers initially with a future view of adding multiple national currencies.