IBM introduced the Blockchain World Wire (BWW) which is a cross-border payment system that’s designed to eliminate banking intermediaries, cut expenses and lower transaction times for traditional international payments.
IBM’s announcement about World Wire says that the new financial rail is able to clear and settle cross-border payments almost in real-time.
World Wire is using the Stellar protocol and third-party crypto such as the Stronghold USD stablecoin, in order to enable financial institutions to clear and settle cross-border payments almost instantly.
“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,” IBM says.
McKinsey & Company reported that the payments market would more than likely reach $2 trillion by 2020.
BWW’s best features
BWW provides a few great features and you can see the most important ones below:
- A single exchange fee between all currencies
- End-to-end transparency
- A straightforward and configuration-ready solution that integrates with any system
- Support payments of any size, to any destination, in any asset type
- Security-rich network with robust access controls
BWW also highlighted the ease of its use and said “The institutions use their existing payment systems – seamlessly connected to World Wire’s APIs – to convert the first fiat currency into the digital asset. World Wire then simultaneously converts the digital asset into the second fiat currency, completing the transaction. All transaction details are recorded onto an immutable blockchain for clearing.”
There’s an increasing number of blockchain solutions that are making the interoperability of various blockchain and fiat currencies much easier.
This is an essential way in which cryptos can be used to create a web that transfer values among businesses and between all kinds of entities across the whole world.