Wells Fargo And HSBC Open Up To Digital Yuan
The FOREX network that HSBC created last year using DLT now added the digital YUAN.
In this video I discuss what is really taking place although the crypto community will do more screaming about CBDCs being implemented.
Link to article discussed in video:
https://crypto.news/wells-fargo-and-hsbc-add-offshore-digital-yuan-to-their-foreign-exchange-system/
▶️ 3Speak
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Summary:
In this video, Task discusses Wells Fargo and HSBC incorporating the digital yuan into their systems. He sheds light on the misconceptions surrounding central bank digital currencies (CBDCs) and highlights how the digital yuan, a success in China, may not perform as well outside the country. Task explains that the digital yuan is integrated into a blockchain system developed by HSBC and emphasizes that the system does not resemble traditional cryptocurrencies like Bitcoin or Ethereum. He delves into the significance of efficient international settlement systems and the global competition among banks to maintain relevance in the ever-evolving financial landscape.
Detailed Article:
Task starts the video by addressing the addition of the digital yuan by Wells Fargo and HSBC into their systems. He points out the prevalent misconceptions about CBDCs, arguing against the notion that the absence of a digital dollar poses a threat to the US dollar. Task emphasizes that the digital yuan's success in China might not translate outside the country and discusses the importance of distinguishing between retail and wholesale discussions of CBDCs.
The focus shifts to the blockchain system developed by HSBC in 2021, which facilitates transactions involving the British pound, US dollar, Euro, and Canadian dollar. Task clarifies that this system is a closed ledger run by banks and is distinct from cryptocurrencies. Despite settling about $200 billion in transactions, he highlights that this amount is relatively small within the banking industry.
The discussion progresses to the inefficiencies of international settlements and the need for improved technology in the banking sector. Task mentions the Fed's upcoming upgrade called FedNow and argues that CBDCs may not necessarily enhance the banking system's relevance. He elaborates on how banks operate under fractional reserve banking and underscores the intense competition within the banking sector.
Task elucidates that the addition of the digital yuan to the existing system aims to enhance efficiency in forex transactions. He explains that the technology aims to streamline cross-border payments, which are currently slow and inefficient due to varying bank qualities and technologies worldwide.
The video concludes with Task highlighting the cutthroat competition among banks and the constant quest for technological advancements to stay ahead in the industry. He mentions Hive as a potential solution due to its technological capabilities and global coverage, signifying the ongoing evolution within the financial sector.
In essence, Task's analysis provides a comprehensive insight into the integration of the digital yuan by Wells Fargo and HSBC and the broader implications for the banking industry's competitive landscape and technological advancements.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.