In partnership with Stellar, IBM will allow cross-border transactions worldwide with different fiat currencies
Through its website, the multinational IBM said it was ready to launch a new global payment network called “Blockchain World Wire” or BWW, which will use the startup Stellar’s Blockchain to act as means of financial transmission, allowing fiat to fiat transfers within just seconds, clarifying that the published version is still beta for the moment.
Blockchain World Wire facilitates transactions between banks practically at the time of execution, being the last step of development carried out by both companies since the end of 2017.
IBM explained the reason for its association with Stellar and it is because its platform is ideal because it’s configured for this type of service, being able to carry out cross-border transactions around the world with different fiduciary currencies or inorganic money, which allows the company to use this potential to a large-scale, targeting other large companies to offer security, diversity and liquidity in different markets of the globe and independently of the local economy.
Links and a stable virtual currency
A couple of months ago an alliance between IBM and the US-based financial services company, Stronghold, was known to be the backing of a new cryptocurrency linked to the US dollar and, according to both companies, will be implemented to give stability to this sector characterized by its volatility.
Stronghold USD, which companies call ‘the stable currency’, was launched in early July of this year also on the Stellar platform, and can be purchased with dollars through Prime Trust, a bank associated with Stronghold that issues the tokens established in a ratio of 1 to 1.
Jesse Lund, Vice President of IBM’s Global Blockchain, explained that the more applications that use Blockchain and stable digital currency to make transactions, the more merchants will be attracted, as well as suppliers and consumers eager for alternatives faster, cheaper and safer than cash, credit and debit cards, or common bank transfers.
More competition in the sector
The affiliated GMO company of the Asian giant of electronic commerce, Alibaba Ant Financial, is working on products similar to IBM, while other companies related to the technological area have announced their foray into the blockchain for its economic boost.
The interest of IBM and other large companies in linking to this type of market is the emergence of an authorized, but public blockchain network segment. This corporation has not taken a false step, because the future of this new payment network could be used in a short time range by other large companies and be consolidated globally.