IBM Will Create Blockchain Payment System …

IBM Will Create Blockchain Payment System …

IBM to create Blockchain World Wire payment system based on Stellar protocol

The American technology giant IBM announced the development of a new payment system Blockchain World Wire, which will be based on the Stellar protocol. The product is expected to be presented to the banking industry and other stakeholders at the Sibos conference, which will be held in Sydney at the end of October with the support of the Society for Worldwide Interbank Financial Telecommunications (SWIFT).

IBM intends to provide banks with a method for clearing and settling cross-border transactions within seconds. Thus, the new IBM platform can become a direct competitor to the SWIFT payment system and the xRapid transaction solution from Ripple..

The company created a separate page on its website, where it outlined the concept of the Blockchain World Wire: “Financial institutions will use existing payment systems that directly connect to the World Wire API to convert the first fiat currency into a digital asset. World Wire then converts the digital asset into a second fiat currency, thus completing the transaction. All transaction details are recorded on an immutable blockchain for clearing “.

IBM draws attention to potential customers that the new system will simplify the process of making payment transactions, reduce costs and improve the efficiency of settlements.

IBM Will Create Blockchain Payment System ...

According to the company, the payment system will use the stablecoin as a connecting asset between the two fiat currencies. Also, financial institutions will be able to choose the digital currency of the central bank or another digital asset of their choice. After an agreement is reached and other payment instructions are determined, they will be able to connect to Blockchain World Wire via the API to make payments.

In July, it became known that IBM took part in the creation of the USD Anchor stablecoin on the Stellar blockchain, insured by the US Federal Deposit Insurance Corporation (FDIC). At the same time, the company announced that it was considering various options for using the new tool, including for making cross-border payments, while noting that servicing the speculative needs of cryptocurrency traders was not among its priorities. IBM does not specify if USD Anchor will be involved in the new payment system.

IBM Will Create Blockchain Payment System ...

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