The Utility Settlement Coin (USC) project was initially designed as a way to minimize the role of clearinghouses, by letting financial institutions pay each other directly using collateral-backed crypto tokens. However, since the collateral associated with those tokens is held by central banks, the project is increasingly being seen as a step toward reimagining how fiat currency could be issued.
Up Next in Blockchain
Technological advancements require that regulators become more inventive in how they monitor financial transactions. Blockchain technology is increasingly being viewed as a key component to enhance regulators’ digital capabilities for the oversight of financial markets.
CFTC Chairman: Government Must Ditch 'Analog Regulation,' Embrace Blockchain
Fedscoop - Carten Cordell
The Bank of International Settlements (BIS) has published a new report that recommends the use of distributed ledger (blockchain) technology to help central banks replace their aging payment systems. Various central banks are already experimenting with applications of blockchain tech, including the Bank of Canada, the Central Bank of Brazil, the Monetary Authority of Singapore, and the Bank of England.
'End of Life Cycle': BIS Report Positions DLT as Needed Banking Update