IBM is currently setting an excellent example for all regulated financial institutions to become a part of the blockchain revolution.
The International Business Machines Corporation (IBM) has developed a real-time global payment network in order to support cross border transactions and foreign exchange in over fifty countries that are, as of now, using cryptocurrency. So far, the IBM has signed a contract with six different banks for a launch of their stablecoins.
The IBM Blockchain World Wire will assist financial institutions along the way of improving their services which they offer to the clients. It optimizes and accelerates cross border payments, foreign exchange and remittances.
All of this is done by using the Stellar (non-profit organization and platform made to connect banks and payment systems) protocol.
Stellar protocol is based on consensus algorithm and that is how it is different from Bitcoin. Stellar also lets people transact with the currency of your own choice.
World Wire functions as a network provider for international payments which then enables point-to-point money transferring in correspondent banking.
The IBM has been working on this system since the October back in 2017, but now it is officially available and accessible on a number of markets.
The system extends to 72 countries and 47 currencies. All of the payments are made in a timeframe of only a few quick seconds.
The institutions using the system use their existing payment systems which are seamlessly connected to World Wire’s APIs – for a fiat currency conversion into a digital asset. World Wire then continues to simultaneously convert the digital asset into a second fiat currency which then completes the transaction. All transactions made are recorded on the blockchain.
Marie Wieck, the general manager of IBM Blockchain gave a comment on the upgrade as follows:
“We’ve created a new type of payment network designed to accelerate remittances and transform cross-border payments to facilitate the movement of money in countries that need it most,” said Marie Wieck, General Manager, IBM Blockchain. “By creating a network where financial institutions support multiple digital assets, we expect to spur innovation and improve financial inclusion worldwide.”
The advantages of the IBM Blockchain are huge- it processes all payments during seconds also lowering the cost. IBM Blockchain only has one fee for all transactions, which is a contributing factor to generally increased efficiency.
The IBM Blockchain is also able to configure solutions with any system and support payments of any size and destination. In the end a big advantage is of course, the next-level security.
The value of this system is expected to reach a level of 2 trillion dollars by the end of next year. IBM is currently running over 60% of the global transactional systems.