US banks form an alliance to create a cryptocurrency

Banks have been fighting the cryptocurrency threat for quite some time now. However, as the saying goes, if you can't beat the enemy, join them. And this is exactly what five American banks have done that have come together to create a cryptocurrency.

The banks that came together to carry out this proposal are the NY Community Bank, NBH Bank, FirstBank, Sterling National Bank and Synovus Bank. Although there are not too many banks, they hope that as the project unfolds, more banks will join this initiative.

What does this project propose?

This project proposes the creation and entry into circulation of a stablecoin, that is, a stable cryptocurrency that would have a 1:1 ratio with the US dollar.

The currency in question would be called USDF and could become a payment option for those who wish to use it.

It is an option that would allow cryptocurrency enthusiasts to make payments within the country freely. Obviously, this currency would be regulated, but the degree of freedom that it would have is not known with certainty.

In addition, you could exchange your coins for cash at any bank branch or ATM. Without a doubt, this would be a breakthrough that could motivate other banks to enter the world of cryptocurrencies.

Additionally, we have that the adoption of these currencies by users would facilitate transactions.

In other words, it could facilitate transactions between different banking institutions, since it would be done through the blockchain and not through interbank systems. Not only would this reduce the time it would take to make a transaction, but it would also reduce transaction fees.

So far it is just an initiative that these banks, together with JAM FINTOP and Figure Technology, are carrying out. It remains to be seen whether the rest, or at least some of the country's biggest banks, will eventually join.

However, for now this is good news, and it can boost the use of blockchain technology within the country.