Swiss banking giant UBS has successfully piloted a blockchain-based payment system known as UBS Digital Cash. The system is designed to improve the efficiency and transparency of cross-border transactions and streamline and enhance international payments.
UBS Trials Blockchain-Based Payment System for Cross-Border Transactions
It was revealed that the pilot program involved multiple multinational clients and banks, facilitating domestic transactions within Switzerland and international payments in various currencies, including US dollars, Swiss francs, euros, and Chinese yuan.
Andy Kollegger, head of UBS Institutional & Multinational Banking, emphasised the strategic importance of blockchain-based payment solutions for cross-border transactions.
“UBS Digital Cash going forward aims to enable our clients to make cross-border payments in a much more efficient and transparent way,” he stated.
Kollegger also highlighted the potential of UBS Digital Cash to revolutionise international payments by making them more efficient and transparent.
The system is said to operate on a private blockchain network, accessible only to authorised clients. Furthermore, smart contracts automate payment execution once specific conditions are met, further streamlining the process.
By leveraging blockchain technology, UBS said it is aiming to enhance liquidity management and provide greater visibility into cash positions for participating firms. The increased transparency is said to enable more efficient intraday liquidity management and adjustments to liquidity buffers.
