IBM Empowers Global Financial Payment Module With Blockchain Technology

Global giant IBM is taking up the path of benevolence by implementing the technology behind Bitcoin, i.e, Blockchain for bridging gaps in between small business houses located in underdeveloped countries so that they can participate in global trade with renewed enthusiasm. The project was announced recently this week and will be operated in collaboration with two fintech startups KlickEx Group and Stellar.org

These two companies will make use of IBM’s Blockchain technology for processing financial transactions by surpassing geographical as well as currency barriers. This process is usually quite expensive for small business houses to afford especially when they are operating from an industrially backward region having smaller banking infrastructures. Stellar.org has announced that the project will be focussed on “underdeveloped payment corridors” wherein underdeveloped countries such as Fiji and Samona which have been handicapped by instability of economics, monetary policies and currencies can finally engage in international transactions. Stellar’s existing setup looking after global Blockchain transactions will hereby get the solid backing of IBM’s mammoth scale and bank partnerships. Liquidity provider KlickEx Group will also receive a positive impetus in working with international banks given IBM’s outright brand image.

IBM is presently working on a large number of projects build around the Blockchain architecture. IBM announced the collaboration along with food distributors such as Nestle and Walmart earlier this year for mitigating food-borne disease spread by stringent tracking of food supply chain starting straight from the farm and finishing at the end store. Blockchain has become the latest talk of town because of its ability to securely exchange money across global borders without losing out on the security aspect and by successfully avoiding a middleman while achieving the end goal.

Also Read: IBM ahead of Microsoft in Blockchain Technology Race

The blockchain technology came as a blessing during the financial crisis of 2008 when Satoshi Nakamoto, whose identity has not yet been revealed came up with the first decentralized peer-to-peer cryptocurrency termed Bitcoin as a safe mode of exchanging money outside the purview of banking arena and government intervention. People usually limit Blockchain technology to Bitcoins. But the reality is a far cry with Blockchain being a holistic balloon of which Bitcoin is just a small part. However both of these are based upon the same technology of having a decentralized digital ledger. Thus every transaction taking place across the blockchain platform gets recorded across several computer servers. This technology which brings along enhanced transparency is nearly fraud-proof.

From the perspective of business houses, the blockchain product holds the potential to manage both financial and legal credibility of a certain transaction encompassing several activities like establishing the contract terms, managing documentation, obtaining letters of credit, putting up collateral as well as finalizing terms with immediate payment.

IBM was recently quoted as making a statement during a press release that, “For example, in the future, the new IBM network could make it possible for a farmer in Samoa to enter into a trade contract with a buyer in Indonesia.”

The payment module have already become fully operational in twelve different regions spanning Australia, Pacific Islands, UK and New Zealand.

Also Read: Alibaba, EY, IBM and Microsoft Implements Blockchain Technology

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