USC: Block block of legal digital currency


nnnIn the third stage, Barclays and other banking institutions have joined the “multifunctional currency” (USC) for settlement of transactions with associated central bank accounts. The fastest at the end of 2018 can be launched the first on-line mortgage token exchange.n
nnTranslation: Annie_Xun
nThe latest phase of the “USC (Utility Settlement Coin) project, which aims to trade settlement with the token of the associated central bank account, has begun to expand the alliance.n
nBarclays, CIBC, Credit Suisse, HSBC, MUFG and State Street are the most recent participants in the project. Began with UBS and other early members of BNY Mellon, Deutsche Bank, Santander and NEX. British startup Clearmatics is responsible for technology development.n
nUrer’s strategic investment and financial technology innovation director Hyder Jaffrey said the third phase of the project lasted about 12 months. After that we may see the first on-line mortgage on behalf of the platform on behalf of the coin exchange, the fastest is the end of 2018.n
nAt present, there is not too much involved in the underlying technology of the USC project. Support Cleamatics to the centralized clearing system Robert Sam, chief executive officer of Clearmatics, based on the Tower-based block-chain technology, confirmed that USC’s underlying adoption of similar technologies.n
nn”It’s similar to the architecture of the etherra, rather than a UTXO or Bitcoin.” Whether the project contains a single complete block chain or a series of interconnected chains, he explains that “we will publish the interoperable program at the right time, based on open standards and open source deployments.”n
nnPrivacy is a big problem with industry-level block chains that handle sensitive information. Clearmatics exploits ring signatures to develop privacy solutions Mobius. A ring signature is a zero-proof proof of the member’s verification, often associated with anonymous voting and high-density.n
nAt the recent Enterprise Ethereum Alliance meeting, Clearmatics block chain engineer Matthew Di Ferrante explains how Mobius is used to pay. Pointing out that its untested encryption hypothesis is less than zero proof that the computational cost is also less. It can handle tens of thousands of transactions in one second.n
nInterestingly, the USC development time overlaps with CLS’s development of CLSNet, a new automated payment network service for foreign exchange transactions based on the distributed books platform Hyperledger fabric. It is clear that regulators and central banks are concerned about the new point-to-point infrastructure, including new services for market infrastructure operators.n
nOne of the banks that recently joined USC was Barclays, Lee Leine, chief technology officer at Barclays Investment Bank, who stressed that Barclays has just joined the USC project and will begin to review all aspects of its architecture, including data privacy, scalability, and existing infrastructure Interoperability, and so on.n
nHe said that in addition to reducing the capital benefits of the billing cycle and reduce the potential benefits of risk, may also bring more income on the industry structure. “The existing capital market ecosystem contains a highly complex technical environment that interacts through a variety of different data feedbacks. Some of the industry processes have overcome solutions to project deficiencies, but lack the final determinism of real-time settlement. Innovative thinking, If you have a multifunctional token to ensure the final settlement, then you may be able to simplify the ecosystem, reduce costs and risks. “n
nUSC use case planning is likely to start with payment, and then long-term plan is to add more transactions.n
nn”The potential value of this versatile tokens can eventually be extended beyond the payment, including complex transaction types that support the atomic exchange of different asset classes you need.”n
nnn”A good example is payment settlement (DvP), one aspect of the transaction is to pay, because the USC tokens are denominated in a specific currency, on the other hand is the securities. The other benefits may be the end of both the simultaneous settlement, not both There is a time difference between them.n
nnLarger challenges may include how to make efficient multi-party settlement in the chain chain, even in the clearing house. However, Braine pointed out that efficient securities settlement still presents a challenge to distributed books. He explained. “Remember that there is no single billing scheme that is perfectly suited to all scenarios, one of which is the unavoidable tradeoff between settlement frequency and settlement efficiency.”n
nBraine said that although some people suggested that efficient securities settlement in a completely central way, but he was skeptical. “I think that for some settlement optimization, you need to efficiently and temporarily centralize the algorithm in some way, in order to carry out the relevant batch. That is not necessarily incompatible with distributed books, it simply means that you may need to control the right to pay To a trusted institution, perhaps a trusted distributed book technology node, or a trusted prophet. “n
nOn the block chain and the digital currency, the central bank has been actively discussing. The Bank of England, the Bank of Canada and the MAS have research projects.n
nBut despite the positive attitude, but the central bank may issue digital currency for many years, so the focus of the main currency of the USC may be used.n
nBut the advancement of the project, of course, means relaxing the “Gordian Knot”: a set of agreements, perhaps a network agreement, a counterparty agreement, which regulates compliance.n
n”Banks in the form of USC accounts in the central bank are enough to allow global regulators to approve banks that use this approach to reduce their capital requirements for each other,” said Peter Randall, chief executive of regional chain settlement program competitor SETL.n

Leave a Reply

Your email address will not be published. Required fields are marked *