World's Leading Banks Start Creating New Cryptocurrency

Four of the world's largest banks, namely UBS, Deutsche Bank, Santander and BNY Mellon, have begun working on a new digital currency with the UK-based brokerage company ICAP.

MOSCOW (Sputnik) — According to The Financial Times newspaper, the banks have teamed up to create a new industry standard and are set to pitch the idea to central banks, hoping to launch the new digital currency commercially by early 2018.

The media outlet said that the Swiss USB bank, German Deutsche Bank, UK subsidiary of the Spanish Santander bank and US BNY Mellon bank are expected to publicly announce the move later on Wednesday.

Digital currencies, also known as cryptocurrencies, have no material form and global currency regulation does not currently apply to them. An unlimited number of anonymous sources can issue and use such currencies. Central banks worldwide have treated the phenomenon with caution, although some have started exploring the possibilities it offers and even developing their own cryptocurrency. Russia's Central Bank has received a number of proposals on creating a Russian national cryptocurrency.