Computing giant IBM introduces a new blockchain-based financial solution. Dubbed as ‘IBM Blockchain World Wire‘ the solution has the potential to completely master the current global payments and remittances, as alleged by the IBM.
According to the official announcement by IBM, the new solution combines the Stellar blockchain with digital assets to make instant money transfers possible of a guaranteed value possible. The stellar-based platform describes itself as
“financial rail that can simultaneously clear and settle cross-border payments in near real-time.”
According to IBM, World Wire will compliment any of the existing payment systems and within a high-security environment support payment of any size, to any destination and in any asset type. The Information from IBM says in part:
“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.”
World Wire framework
The transacting financial institutions under the World Wire framework will be able to use a digital asset of their choice, whether central bank digital currency, crypto or stablecoin. The digital asset facilitates the trade and supplies important settlement instructions for the transaction to be confirmed.
When the institution is connected to the World Wire API, they can use their existing payment systems to seamlessly convert their fiat currencies into the desired digital asset to be traded. Concurrently the platform converts the digital asset into the second fiat currency for the receiver, completing the transaction almost instantaneously. For security and clearing purposes all transactions are recorded on the Stellar blockchain. Since every transaction that takes place using World Wire will have a permanent record the platform can help with regulatory compliance as well.
According to IBM, the main features of the new solution is that it facilitates faster payment processing, simultaneous clearing, and settlement, reduced time to dispute resolution and reconciliation and substantially lower clearing costs. Reportedly, World-Wire further reduces the capital requirements for cross-border transactions as it eliminates the presence of multiple parties in a single transaction.
Furthermore, IBM states that World Wire enhances the end-to-end transparency as it employs one one exchange fee between all currencies, and it potentially reduces the existing time and cost profile of connecting with new markets and revenue flows.
IBM has been inclined towards blockchain technology and cryptocurrency for a while now. Their latest solution, IBM Blockchain World Wire underlines the growing influence of Stellar which recently hit a milestone of 1,000,000 accounts.