- Wells Fargo explores the benefits of blockchain technology.
- The bank’s coin won’t be available for customers.
The fourth-largest bank in the world by market capitalization announced the plans to launch a pilot version of its own blockchain-based cryptocurrency called Wells Fargo Digital Cash. The new technology is aimed to facilitate cross-border payments between the bank’s branches.
The coin based on the bank’s proprietary blockchain will be pegged to the US Dollar. The bank hopes that the new technology will help to keep track of payments within its internal network and bypass third parties in international transfers.
“We are eliminating the intermediaries which can often extend the timeline to be able to do cross border money transfers,” Lisa Frazier, head of the Innovation Group at Wells Fargo said.
However, the coin will be used only for the bank’s internal needs, and it won’t be available for customers. Actually, Wells Fargo corporate clients won’t notice any differences in interacting with the bank.
The pilot version of the system will be launched next year, however, the bank has already performed tests by transferring money between Canada and the United States.
Meanwhile, Wells Fargo remains skeptical about cryptocurrencies like Bitcoin. The bank considers them speculative assets. Last year, Wells Fargo banned cryptocurrency purchases with credit cards, citing excessive volatility of the asset.
Read more about the ban
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