Wells Fargo, the fourth largest bank in the United States, announced on Tuesday that it will be piloting a new digital currency for cross-border and interbranch cash transfers, Reuters reports. The blockchain-powered cryptocurrency, Wells Fargo Digital Cash, will reportedly be pegged to the dollar, and allow the bank to save money and time during asset transfers by eliminating the need to go through third parties.
Wells Fargo Innovation Group head Lisa Frazier highlighted the time-saving benefits, noting:
“We are eliminating the intermediaries which can often extend the timeline to be able to do cross border money transfers.”
Apparently, the bank has already tested the system with asset transfers between the U.S. and Canada. The pilot program is expected to start next year. If successful, Wells Fargo plans to roll out the program on a broader scale and could eventually include other currencies in its transaction system.
According to Reuters, clients can continue to use the bank’s services without any noticeable change, since Wells Fargo Digital Cash will not be “client-facing.”