IBM just announced its Blockchain World Wire, a new payments system that relies on the Stellar blockchain. It will. use digital currencies to settle cross-border payments. The goal is to ensure quick movement of money and in a reliable manner. It will also eliminate intermediaries and the crime used in the international transfer of money.
According to Jed McCaleb, founder of Stellar Foundation, “The use of Stellar protocols by IBM will develop the network massively. In addition, the new platform will change the way money is moved in the world improving international transactions. This will also lead to the inclusion of developing countries in the advanced financial solutions.
Organizations using the technology will have to agree on a stable coin to use as the bridge of their currencies.
The platform will work by converting fiat currencies to a digital currency and then transferring it to the planned institution which will then convert it back to fiat currency. Blockchain World Wire will take care of the conversion and therefore the institutions only need to choose their proffered digital currency.
The digital currency will not affect the transactions since it will only act as a bridge.
Advancing Blockchain Technology
IBM has been making major steps into the financial sector through the blockchain technology.
At the start of 2018, IBM partnered with Stronghold in creating a dollar-associated stable coin called the stronghold USD. The company has said that it will continue exploring different options of the technology to ensure that international financial settlements are safe and fast.
IBM is taking advantage of the fact that many financial institutions are concerned about Ripple’s privacy and scalability.
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