IBM Blockchain has recently officially introduced its blockchain technology based payments system which is called World Wire, CryptoCoinSpy reports. The system, which also is presented on the IBM website, is officially confirmed to be run on Stellar network.
The source also informs that recently the value of Stellar Lumens (XLM) has been seeing interesting movements due to the recent developments. It also suggests that due to the new payment system that uses blockchain technology as well as the Stellar protocol, IBM Blockchain allows financial institutions “clear and settle cross-border payments in a few seconds”.
According to the official information available on the official website of Word Wire, the benefits of the system include: “faster payment processing (simultaneous clearing and settlement), lower costs, increased efficiency and simplified payment and asset type form of transaction. With 97% of the world’s largest banks as clients of IBM there remains little doubt that their new flagship payments system won’t be heavily advertised to their existing customer and client base”.
At the same time, it is notable that no official feedback or comments have been shared by the sides so far. There is however an important aspect to be considered, which is the fact that currently banks prefer to rather stay away from cryptocurrencies due to lack of broad central bank consensus around legitimacy. In case of countries such as China, India, Brazil etc. cryptocurrencies can be banned partially or fully which can cause list of obvious limitations. This means that as the amounts of B2B payments that are based on blockahin keep growing, fiat currencies as assets still need to be involved.
“The expectation is the forward thinking central banks such as MAS will legitimize a central bank digital currency (CBDC) in order to facilitate blockchain payments over time for the greater good… The importance of a CBDC on a blockchain network (and specifically on Stellar’s network) cannot be overstated. It would provide the legitimacy that the industry and blockchain technology has been generally lacking”, the announcement concluded.