IBM Introduces Stellar Based Blockchain World Wire Payment System

Blockchain World Wire, a stellar based blockchain payment platform has been launched by computing giant IBM. International Business Machines Corp. (IBM) has disclosed the launch of this new platform, which can simultaneously clear and settle cross-border payments in near real-time.

Blockchain World Wire will allow for an instant clearing and settlement of all transactions using Stellar’s blockchain network. Stellar is an open-source, decentralized protocol for digital currency to fiat currency transfers which allows cross-border transactions between any currencies. It is a distributed ledger network that connects banks and payments systems.

According to the official announcement by IBM,

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.

The tech giant further explains that the financial world is already researching and studying the use of blockchain technology. A variety of associations involving business-focused digital trade chain consortium and the technology-focused Hyperledger have been thinking about blockchain technology. The discussions about the use of this technology have given rise to collaborative pilots and private programs. Some of these pilots have now developed into production systems. Many more projects are likely to be implemented within the next 12 months. Blockchain technology has an amazing security, which can help ensure data integrity, promote transaction and settlement efficiency, and verify identity. There are various business applications of blockchain which are still in experimental stages. The applications range from academic research experiments to the issuance of central bank digital currency and this technology is developing swiftly.

How IBM Blockchain World Wire works?

According to IBM, this will change the payment world. It has reduced time to dispute resolution and reconciliation and World Wire eliminates multiple parties processing transactions. There will be one exchange fee between all currencies and it will have end-to-end transparency.

The company further elaborated,

Our convening power brings together incumbents and FinTechs, ensuring collaborative innovation with data security, compliance, and consumer focus. We work with you to ensure that IBM Blockchain World Wire is compatible with your existing payment systems, making it as seamless to adopt as possible.

This is not the first time IBM is using blockchain technology. In the month of July, IBM had signed $740 million deal with the Australian government to use blockchain and other new technologies to improve data security. As per the agreement, IBM’s R&D teams in Australia are going to work with Melbourne-based research team to accelerate the application of blockchain, AI and quantum computing in government agencies like Department of Human Services (DHS), the Australian Taxation Office (ATO), the Department of Home Affairs (DHA), and the Department of Defence (DOD). Under this five year agreement, all government agencies will be able to access the financial benefits and technologies.

The Stellar platform is also not new in the world of a payment system. BloomX, a money services platform for traditional forex and remittance agents has already adopted stellar to process payments. According to BloomX, Stellar is highly scalable, simple to use, fast, cheap and reliable platform.

The tech giant also said that Blockchain is the perfect technology for payments because of its faultless transaction and settlement security, data integrity, record-keeping, and efficiency properties. The payment world gives various opportunities. Cross-border e-commerce is now increasing at more than 20% yearly. Cross-border payments account for about 40% of global financial revenues with payment flows of more than $135 trillion during 2016. The goal is to create scalable and cost-effective solutions that can be implemented in parallel to current financial rails, so migration can be measured, rather than a risky one.

Money should be naturally connected to the internet, unconstrained by geography or financial institutions. Foreign exchange should be swift and immediate and all transactions should be free. The thinking goes that if sending messages using email is free, why shouldn’t sending money also be free?

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