Utility Settlement Coin (USC) Developer Fnality Partners With ConsenSys-Backed Adhara
- Utility Settlement Coin (USC)'s partners with startup Adhara whose previous project has the potential to evolve into the Fnality Payment System.
- Libra sparked global debate regarding digital currencies and the role of the Central Banks.
Reports have emerged about a partnership between ConsenSys-backed Adhara and the Utility Settlement Coin (USC). Adhara has previously collaborated with the South African Reserve Bank (SARB) in a project dubbed Khokha, that used Blockchain Enterprise Quorum to analyze the performance of the zero-knowledge proofs (ZKPs).
Utility Settlement Coin, the blockchain-based payments system involving commercial and central banks, in comparison to a CBDC, is essentially commercial bank money converted into a stablecoin. The CBDC is issued by central banks taking away the decentralized aspect.
Fnality’s plans, per an obligation they have with their partners, have to make sure there is a basket of Fiat currencies pegging the coin. The USD, Euro, Pound, Yen, and CAD are the represented currencies on Fnality’s Blockchain platform. This would enable global, round the clock, transactions by solving the “cash on ledger” problem.
Fnality boasts of having a number of major banking titans in their fold. The list includes Barclays bank Santander, BNY Mellon, ING and others who raised a sum totaling to around $64.5 million last year.
Fnality’s CEO Rhomaios Ram spoke positively in light of the new partnership adding how Adhara’s experience in the field would be of tremendous help to Fnality. Sources around Fnality seem to indicate that the partnership could be strategic given taking to account the groundwork that Adhara laid with the South African project could be easily be morphed to the much desired Fnality Payment System.
Libra Force Global CBDC Debate
It could be argued that the sudden hype around Central Banks Digital Currencies could be directly attributed to Facebook's audacious project Libra. According to Fnality CEO Ram Libra could have been both a good and bad thing. This is because it brought the spotlight to the discussion and results have been crystal clear as several central banks are currently working on their Digital currencies.
“If the only thing that this [Libra] does is force the conversation and force some speed up on CBDCs – from a personal perspective that might not be great – but from the investors' perspective that might still work for them [Fnality’s shareholder banks],”