On the 17th of September, financial giant Wells Fargo announced plans to pilot a dollar-pegged stablecoin – Wells Fargo Digital Cash – which will be issued on the company blockchain platform to improve the efficiency of settlement of cross-border payments within its global network.
Head of the Innovation Group at Wells Fargo Lisa Frazier shared that the company is fully aware of the “growing demand to further reduce friction regarding traditional borders” and believes that blockchain technology can be successfully used for this purpose:
“We believe 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.”
The pilot is planned for the next year and it will be applied first to USD transfers with the goal of expanding further to other currencies and the entire network. The technology implementation is expected to provide a tool for real-time money movement, which will result in the reduction of operating costs.
Wells Fargo & Company, which was ranked No. 29 on Fortune’s 2019 list of America’s largest corporations, has a long-standing history of violating consumer protection law. Earlier last year, the third largest bank in the US agreed to pay $575 million to resolve state investigations.
The bank’s anti-crypto campaign started with claiming that Bitcoin and other cryptocurrencies are risky investments and banning crypto purchases. Wells Fargo’s customer support Twitter account recently confirmed that the bank “does not allow transactions involving cryptocurrency”.