According to several sources, IBM has launched a blockchain-based payment system called Blockchain World Wire. This IBM system will be a new payment network that uses digital currency on Stellar`s blockchain to settle transaction in near real time. This system is set up “to clear and settle cross-border payments” according to IBM. The Stellar network is a distributed, blockchain-based ledger that facilitates cross-asset transfers of value.
In this new payment system, two financial institutions must agree on which currency to use, a stablecoin or any digital asset, that is to be used to bridge transfers of any two fiat currencies. These companies can use their existing systems to connect to World Wide API, to convert the first fiat currency into a preferred digital asset. World Wire will then convert the digital asset into the second fiat currency in real time, thus completing the transaction. The details of the transaction will be recorded “onto an immutable blockchain for clearing.”
This new product by IBM will prove to be competition for Ripple`s product aimed at institutional clients, such as xCurrent and xRapid. It is now clear that the world of bank transfers and money transfers is being injected with new technology that will benefit clients as speed and costs will be more competitive and with the support of major firms like IBM, have technical banking that is unmatched.