Six large, international banks have signed letters of intent to IBM in order to use their now-live blockchain-based payment network in order to issue stablecoins backed by their own national fiat currency. In today’s cryptocurrency news we read more about IBM’s announcement and the banks’ goals.
The reports published today show that IBM’s cross-border payment network ‘’Blockchain World Wire’’ was launched with the help and collaboration with Stellar back in 2018. BWW went live today and now serves 44 banks, aiming to leverage cryptocurrencies in order to enable international settlements between banks.
According to the Cheddar reports as well, six banks confirmed to have issued their intent to issue their own stablecoins backed by national currencies on the World Wire blockchain including the South Korea’s Bank Busan, the Rizal Commercial Banking Corporation of the Philippines and Banco Bradesco in Brazil.
The other banks are still undisclosed but it is expected that some of them wish to issue a Euro-backed stablecoin and also an Indonesian rupiah-backed stablecoin. IBM previously partnered with Stronghold which is also Stellar-based and USD-backed asset in order to create the first stablecoin on the Stellar Network.
Lund further explained the plans of IBM regarding the blockchain expansion and the blockchain-powered settlement network by saying:
“We let the market drive the expansion and selection of the network incrementally. We are really feeling excited that we are on a roll to build something new and revolutionary that’s really going to change the landscape of cross-border payments.”
The reports also show that the Blockchain World Wire provides support for about 50 currencies currently, for payments in about 72 countries around the world. This method makes possible for taking out the intermediary between legacy bank settlement systems with the help of the XLM token because of its immutability and its efficiency as a decent settlement instrument between institutional players.
Lund further emphasized in an interview about IBM’s issuance of the settlement asset:
“Our view for stablecoins is really that they should be more broadly accessible and what World Wire seeks to do is to provide fungibility of digital assets across financial institutions.”
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