Simplifying Global Payments
Currently, cross-border payments can take days or even weeks to be processed. While a lot of new-age financial innovators are working towards simplifying this process, the agenda needed high-profile supporter(s). Fortunately IBM has stepped up, and is unveiling its own solution, a Blockchain based network for facilitating cross-border payments.
The tech giant has teamed up with with Blockchain startup Stellar and payment company Kickex in order to create world’s first cross-border payments system based on Blockchian powered network. IBM has also gathered support from some of world’s leading financial institutions including National Australia Bank, Rizal Commercial Banking Corp. (RCBC) Philippines, Sumitomo Mitsui Financial Group, TD Bank and Wizdraw (HK) of WorldCom Finance. The initiative aims to reduce the transaction settlement time and lower the cost of completing global payments for businesses and consumers. This also marks a new beginning for Blockchain technology, as it moves towards institutionally viable solutions. Not just this, experiments like these are essential for Blockchain to be accepted as a part of the global finance system.
Another notable element here is the coming together of public (IBM) and private (Stellar) Blockchain networks, a trend which is grabbing a lot of attention lately. By collaborating with public networks, a permissioned Blockchain can solve the issue of scalability without really opening its own network. Sounds like a win-win, eh?