The Crypto wouldn't be FDIC insured just the fiat in the bank and only up to relatively small limits per account.
And despite the (sometimes) pain-in-the-butt delays you can experience with SWIFT it's pretty good for sending the signal to move size.
Alternatively you have SEPA in the Eurozone and both Russia and China have their own message systems, Mir and CIPS respectively.
So again, why?
The latest attempt to create a cryptocurrency pegged to the U.S. dollar, or "stablecoin," combines 21st-century technology with an invention from the Great Depression.
Announced Tuesday, a startup called Stronghold is launching USD Anchor, which will run on the rails of the Stellar blockchain and use its consensus mechanism to verify transactions. The token will be backed one-for-one with U.S. dollars held at a Nevada-charted trust company called Prime Trust, which in turn will deposit the cash at banks insured by the Federal Deposit Insurance Corp.
New York City-based Signature Bank was originally expected to be providing the federally insured backing of the stable coin, but it appears to have backed out of the partnership at the eleventh hour, according to IBM.
IBM is partnering on the initiative with Stronghold, and said it will explore various use cases for the token with its financial institution clients.
"What we really want to do is enable all sorts of digital transactional networks to settle their transactions with digital fiat currency on the same blockchain networks," Jesse Lund, IBM's head of blockchain services for financial institutions, told CoinDesk.
Stronghold acts as an "anchor," or on- and off-ramp, to the Stellar network. The startup will issue the digital asset, which represents a claim on U.S. dollars deposited with Prime Trust and ultimately insured by the FDIC, the U.S. agency created in 1933 whose sticker on the doors of bank branches has long reassured Americans their money is safe....MORE