Categories: Ripple

IBM unveils Blockchain World Wire for cross-border payments

Click here to view original web page at www.ibtimes.co.uk

IBM Blockchain World Wire To Compete With Ripple's xRapid?

What If Everyone Switches To Cryptocurrency? IBTimes US

IBM has launched Blockchain World Wire, "the new financial rail that can simultaneously clear and settle cross-border payments in near real-time." The global financial network is based on the Stellar protocol and could be a competitor to Ripple's xRapid.

Why advertise with us

IBM has been working with Stellar protocol for quite some time now to integrate itself into the blockchain industry. Stellar is an open-source, decentralized protocol for transfer of digital currencies to fiat currencies, allowing cross-border transactions between any pair of currencies. Using this protocol, IBM wants to "make it possible for financial institutions to clear and settle cross-border payments in seconds."

So how does this IBM Blockchain World Wire work? First, two financial institutions transacting mutually agree to use a stable coin – a central bank digital currency or other digital assets – as the bridge asset between any two fiat currencies. The digital asset facilitates the trade and supplies important settlement instructions.

The institutions use their existing payment systems – seamlessly connected to World Wire's APIs – to convert the first fiat currency into the digital asset. World Wire then simultaneously converts the digital asset into the second fiat currency, completing the transaction. All transaction details are recorded onto an immutable blockchain for clearing.

The IBM website says its new service offering will "revolutionize cross-border payments" as compared to the current international payments systems, specifically addressing the two attributes that make current cross-border payment systems cumbersome — time and cost.

IBM BlockchainIBM has introduced Blockchain World Wire, a blockchain service to enable cross-border payments. Here, a man checks his mobile phone outside IBM's booth at the Mobile World Congress in Barcelona, Spain, Feb. 28, 2018. Photo: REUTERS/Sergio Perez

IBM Blockchain World Wire aims at "redefining access to money for people and businesses everywhere" by having the following advantages over traditional payment solutions:

  • Faster payment processing (simultaneous clearing and settlement)
  • Lower costs (reduced capital requirements for cross-border transactions)
  • Increased efficiency (one exchange fee between all currencies)
  • Security-rich network with robust access controls.

"With IBM Blockchain World Wire, clearing and settlement with finality happens in near real-time. The solution uses digital assets to settle transactions — serving as an agreed-upon store of value exchanged between parties — as well as integrating payment instruction messages. It all means funds can now be transferred at a fraction of the cost and time of traditional correspondent banking," the website explains.

A woman passes by the IBM offices in New York City, U.S., October 17, 2016. REUTERS/Brendan McDermid

However, the main competition for such a service is not from traditional payment systems it seeks to replace, but instead from other such services that are already being used by the financial sector, the most notable of which is Ripple's xRapid.

xRapid utilizes the XRP token to act as a bridge currency to make cross-border payments instantaneous through the Ripple blockchain. The results of the first pilot of xRapid were announced May 10. Financial institutions that utilized the xRapid solution saw a savings of 40-70 percent compared to what they normally pay forex brokers. The average xRapid payment took over two minutes, compared to today's traditional financial systems which take about two to three days for similar transactions.

Companies around the world that are currently testing and using xRapid include Moneygram IDT, Western Union, Cambridge Global Payments, Viamericas, SBI Virtual Currencies, Cuallix, and Zip Remit.

Recently, IBM also collaborated with CLS, a foreign exchange market infrastructure firm, to create LedgerConnect, a proof of concept distributed ledger technology platform created for financial services companies. It is aimed at implementing blockchain in a number of areas, including know-your-customer processes, sanctions screening, collateral management, derivatives post-trade processing and reconciliation and market data.

What If Everyone Switches To Cryptocurrency? IBTimes US IBM has launched Blockchain World Wire, "the new financial rail that can […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Elizabeth White: Helping merchants join the Bitcoin vision

A huge part of making Bitcoin SV (BSV) the new currency of exchange for the world is in developing real… Read More

2 hours ago

‘Youngest Bitcoin Millionaire’ Willing to Stake it All on Metal Pay

Metallicus, the startup behind the peer-to-peer payments platform Metal Pay , received an undisclosed angel investment from the youngest bitcoin… Read More

2 hours ago

Privacy Crypto Dev Attempts to Expose Self-Proclaimed Bitcoin Creator

Anonymity and privacy are extremely important in the crypto industry. The original crypto that the entire industry is based on… Read More

2 hours ago

Bitcoin’s 2019 Gains Not Fuelled on Chinese Capital Flight Onlyh, Claims Circle CEO

According to Jeremy Allaire, the price increases in Bitcoin since the beginning of the year were driven by more than… Read More

2 hours ago

CZ Claims Binance’s Venus Stablecoin Project to Help Facebook’s Libra

Many deem Binance's newly announced Venus stablecoin project as a competitor to Facebook's Libra crypto. But Binance's CZ says otherwise.… Read More

2 hours ago

Bitcoin’s Satoshi Reveal Part 2: Lost Private Key, the CIA, & the Godfather

In part two of his 'Satoshi reveal', self-proclaimed Bitcoin creator Bilal Khalid unveils where all his bitcoins are and much,… Read More

2 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More