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Wells Fargo Digital Cash: Bankers escaping the blockchain revolution

Another one bank has launched corporate cryptocurrency – Wells Fargo, the fourth largest bank in the world and in the United States.

Earlier this year, JP Morgan launched its own stablecoin JPM Coin. Wells Fargo is now entering crypto and launching Wells Fargo Digital Cash. This is a necessary measure; Wells Fargo is going through difficult times. According to CNN, in 2019 company closes 800 branches to reduce costs. But bank still has $ 1.895 trillion of assets.

The banking community is a natural and brutal enemy of cryptocurrencies. Crypto itself can destroy traditional banking by the fact of its existence. But bankers are not ready to give up. They have already managed to crush the fintech revolution. Perhaps it will be possible to eliminate the cryptocurrency rebellion in the same manner. The main thing that banking loses is expensive and low-speed cross-border payments. The obsolete and inconvenient SWIFT cannot be compared to cheap instant cryptocurrency payments. Ripple is ready to help bankers, but in this case, banks lose their profit, it goes to Ripple, as well as a control of the operation. The solution is to launch their own corporate cryptocurrency.

Lisa Frazier, Head of the Innovation Group at Wells Fargo, notes:

– We believe distributed ledger technology, DLT, holds promise for a variety of use cases, and we’re energized to take this significant step in applying the technology to banking in a material and scalable way. Wells Fargo Digital Cash has the potential to enable Wells Fargo to remove barriers to real-time financial interactions across multiple accounts in multiple marketplaces around the world.

It seems that the bankers woke up and found how to stop crypto revolution and preserve their influence and income. Highly likely, in the near future we will see a boom of launching of closed banking blockchains and corporate cryptocurrencies. And then the appearance of some kind of “new SWIFT” is likely. If by that time crypto will not discover all its strength.