IBM Blockchain Platform, the US giant will launch soon “World Wire”, a payment platform based on Stellar
IBM recently unveiled a new financial solution based on Stellar. This is an open source and decentralized protocol. By IBM Blockchain, the company aims to revolutionize the global payments and remittances market.
IBM Blockchain and “World Wire” payment system
This new platform, called IBM Blockchain World Wire, will leverage the Stellar technology to support fund transfers. Thanks to a network that connects banks, payment systems and individuals, the company plans to offer fast and inexpensive international transfers.
The idea, according to IBM, is to allow transfers without many intermediaries that are now obvious for a cross-border credit transfer. The offer is a much more interesting solution in terms of transaction costs, speed and operational efficiency.
This new platform will look as “a financial ramp that can simultaneously enable financial compensation and settlement of cross-border payments, almost in real time”. According to IBM, World Wire will be able to integrate with all existing payment systems. Moreover the possibility of adding new and much faster technologies in the future.
IBM Blockchain, Remittances made using digital assets
Indeed, the project will offer a programming interface (API), called World Wire APIs. It would be linked to the payment systems currently used by banking institutions.
IBM speaker explains it in simple words. “Two financial institutions that together make a transaction agree on the use of a “stablecoin”, a digital currency issued by a central bank or any other digital asset, which will constitute a “bridge” asset between two fiduciary currencies. The digital asset will facilitate the exchange, and provide important settlement instructions […] Thus, funds can be transferred for a fraction of the cost and time found in the traditional banking system. ”
At the same time, IBM Blockchain may comply with applicable regulatory requirements. Hence as each transaction on World Wire will be permanently on the Stellar blockchain technology.
According to the site FinExtra, this product should be presented next October, as part of the Sibos Banking Conference.
The announcement of IBM Blockchain platform World Wire’s development comes as the Stellar protocol has a growing influence. Launched in 2014, it recently crossed the threshold of one million accounts created on its network.
Competition that promises to be intense for IBM Blockchain
With this initiative, IBM hopes to provide a payment system based on alternative blockchain technology platform to that proposed by Ripple.
The Californian company already offers solutions based on blockchain technology, called xCurrent and xRapid. Other entities, such as the Japanese digital services company GMO or Ant Financial, a financial subsidiary of the Chinese giant Alibaba, are also working on similar systems.
But if IBM platform,released a study in January that said blockchain technology is likely to “revolutionize” the global financial system. However the company believes that it is “unlikely” that banks will one day become obsolete.
In July, we learned that IBM Blockchain platform had already turned to Stellar. The company announced the creation of “Stronghold USD”, a “stablecoin” backed by the dollar operating on this platform network.