Tech giant IBM has recently in announced that they are introducing, cut costs, lower transaction times and the Blockchain World Wire (BWW), which is a cross-border payment system aimed to phase out banking intermediaries. The World Wire announcement by IBM will allegedly all clear and settle cross-border payments at the same time and almost in real time. World Wire utilises an intermediary cryptocurrency, such as the Stronghold USD stablecoin and the Stellar protocol. This enables financial in financial institutions to process and settle cross-border payments in just seconds.
âThe solution uses digital assets to settle transactions â serving as an agreed-upon store of value exchanged between parties â 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.âIt has been reported that the payments market is believed to hit $2 trillion by 2020, by McKinsey & Company. The Blockchain World Wire has many notable strong features such as:
- Supporting payments (no matter the size)
- Payments can go anywhere in any type
- Powerful security in the network with strong access controls
- End to end clarity
- Only one exchange fee between every currency
- Integrates with any system
âThe institutions use their existing payment systems â seamlessly connected to World Wireâs APIs â to convert the first flat currency into the digital asset. World Wire then simultaneously converts the digital asset into the second flat currency, completing the transaction. All transactions details are recorded onto an immutable blockchain for clearing.âIBM have noted that the system will provide different methods for users who prefer not to use cryptocurrencies.