International Business Machines Corp. (IBM) announced the launch of a new product called "Blockchain World Wire", a blockchain-based payment system that can revolutionize cross-border payments. The system has been in beta for a long time. Its long-awaited launch will facilitate instant clearing and settlement of all transactions using the Stellar blockchain network, a distributed accounting network linking banks, payment systems and people to facilitate cross-border transfers of low-cost assets. (See also How did Stellar become the sixth largest cryptography? )
These systems, which support the transfer of digital resources on a distributed network in real time, help eliminate the role of intermediaries banks, associated costs and delays that are an integral part of current cross-border payment systems. They allow significant advantages in terms of payment processing speed, low to zero transaction costs and greater operational efficiency.
Project API to support the traditional banking system
The project provides dedicated application programming interfaces (APIs), called World Wire APIs, which can be conveniently integrated into the current traditional payment system of banks. These APIs will allow the sender's bank to convert fiat currency into a digital asset that can be sent to the recipient's bank. The bank of the latter will then cover the digital assets received in the respective legal currency of the associated country and credit it to the recipient's account. The immutable registration of all transactions on blockchain allows for the necessary registration, audit trail and compensation.
The company explains the operation of World Wire: "Two financial institutions that negotiate together use stable currencies, digital money from the central bank or other digital asset as a bridge resource between two fiat currencies: the digital asset facilitates trade and provides important clearance instructions. "
IBM will present this product at the Sibos Banking Conference in October this year, according to FinExtra.
Blockchain World Wire to Compete Against Ripple
Claiming that World Wire "can simultaneously cancel and settle cross-border payments almost in real time", the offer will compete against other blockchain-based payment networks like Ripple and will be aimed at institutional use. Ripple already offers similar blockchain-based payment processing systems, called xCurrent and xRapid. Other global companies, such as the Japanese digital services company GMO Internet and the subsidiary of Alibaba Inc. (BABA) Ant Financial, are also working on similar offers.
The initiative comes on the back of IBM's recent development when it announced in July on the partnership with startup Stronghold and the stellar blockchain to launch the USD Anchor, a stable low-volatility currency that can be used to facilitate cross-border payments that can operate in the regulatory field. (See also, IBM Working on & # 39; Stablecoin & # 39; Tied to US Dollar .)
At the beginning of October, IBM started work on the stellar project, following the which indicated his interest in the expansion of business applications and in the use of cryptocurrencies. (See also IBM launches Stablecoin supported by FDIC-insured banks .)
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