IBM Will Create Blockchain World Wire Payment System Based On Stellar Protocol
US Giant IBM announced the development of a new payment system – Blockchain World Wire. It will be based on Stellar protocol. It is expected that the product will be presented to the banking industry and other interested people at the Sibos conference, which will be held in late October in Sydney with the support of the Society for Worldwide Interbank Financial Telecommunications (SWIFT).
IBM intends to provide banks with a method for clearing and settlement of cross-border transactions within seconds. Thus, the new IBM platform can become a direct competitor to SWIFT payment system and xRapid transaction solution from Ripple.
IBM draws the attention of potential customers to the fact that the new system will simplify the process of payment transactions, reduce costs and improve the efficiency of calculations.
According to the company, the payment system will use a stablecoin as a connecting asset between two fiat currencies. Financial institutions will be able to choose a digital currency of the central bank or other digital asset at their discretion. Once an agreement is reached and other payment instructions are defined, they will be able to connect to Blockchain World Wire via the API to make payments.
In July, it became known that IBM had taken 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 said that it was considering various options for using the new tool, including for cross-border payments, while noting that servicing speculative needs of cryptocurrency traders was not among its priorities. IBM does not specify whether USD Anchor will be involved in the new payment system.