IBM launches a blockchain based payment network using Stellar

IBM launches a blockchain based payment network using Stellar

IBM recently announced IBM Blockchain World Wire,  its global payment network based on Blockchain and Stellar protocol. The news was jointly announced by IBM and Stellar during a keynote at Money 2020 Asia in Singapore. It has already signed with international banks to launch their own stablecoins within the network.

IBM’s cross-platform network, Blockchain World-Wire (BWW) was launched previously in September 2018 in collaboration with Stellar(XLM). BWW that went live recently has reportedly enabled payment locations in 72 countries with 47 currencies and 44 banking endpoints and has signed intent letters with six global banks.

IBM Blockchain World-Wire (BWW) is a real-time global network built on Stellar blockchain. It has a clear goal to settle cross-border payments in real time.

It has been confirmed that six banks have their intentions to issue stablecoins backed by their national fiat currencies on BWW which includes Brazil’s Banco Bradesco, South Korea’s Bank Busan, and the Philippines’ Rizal Commercial Banking Corporation.

IBM head of blockchain solutions Jesse Lund stated other names beyond those banks will be revealed soon which will reportedly issue stablecoins backed by euro and Indonesian rupiah, among others.

Also, the General Manager in IBM Blockchain, Marie Wieck said:

“We’ve created a new type of payment network designed to accelerate remittances and transform cross-border payments to facilitate the movement of money in countries that need it most. By creating a network where financial institutions support multiple digital assets, we expect to spur innovation and improve financial inclusion worldwide.”

The blockchain based network will support settlement using the Stellar Lumens (XLM) and the US dollar stable coin as per the existing  partnership with Stronghold.

During the Podcast with the crypto chick with journalist Rachel Wolfson, Lund explained:

“Personally, I think cryptocurrencies could very well serve as a viable settlement instrument. We’ve started with Lumens, which is the native asset of the Stellar network, but we already have the capacity to introduce other cryptocurrencies that could include Bitcoin or Ether. We will add more digital assets based on client demand and participants on the network”

IBM has been into blockchain industry and exploring its different aspects. Let's hope to see more adoption, and activities related to blockchain in coming days soon.

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