IBM is the world’s leading technology company which has been known for its innovation in the field of computers and digital currencies. We are all well aware of the fact that IBM has been working on cryptocurrencies and blockchain for a very long time. It has been seen a number of times that IBM Wanted to solve the difficulty of transferring money across the borders. They even wanted to provide a better solution compared to cryptocurrencies which are highly volatile. Hence, IBM has launched Blockchain World-Wire. We have listed down the complete details about this across border service below.
What is Blockchain World Wire?
Blockchain World-Wire is the latest blockchain technology which has been developed by IBM. The company announced that this blockchain solution will help in making cross border transactions across 50 countries at a rapid speed. They added that around 47 coins will be backed by Fiat currencies like US dollars for making the fund transfers easier and quicker and that too at minimum charges. Moreover, blockchain world wire will be back by all the Fiat currencies to provide better support of fund transfer.
One of the best thing which makes it highly superior to the cryptocurrencies is the settlement time. The transactions can be settled within 5 to 10 seconds. Hence, there is no need of waiting for long settlement periods. Simply transfer the fund and the transaction gets settled within 10 seconds. IBM claimed that the blockchain technology is unique and the customers can choose their own settlement method and get their funds transfer within seconds at minimum charges. Customers also have the right to select the settlement assets.
The first transaction on the network took place on 8 March 2019 by the CTO of the financial department of IBM. It could initially transfer the funds across 12 countries including Australia, United Kingdom’s, and New Zealand.
More Stable Compared to cryptocurrencies
The major disadvantage of the cryptocurrencies in the day to day transaction is the volatility and the price fluctuation. To remove this restriction from the blockchain technology, IBM has put in extra effort. The coins have been backed by Fiat currencies for extra stability. This will solve the problem of price fluctuation. Hence, the multinational companies can now use the blockchain technology for transferring funds from one country to another in minimum time.
Moreover, this blockchain technology will be completely regulated by retailers and the companies will have to complete KYC and AML in order to use the technology. The Royal Bank of Canada, Australia, and New Zealand amongst the first few participants to use this technology. This caused a huge volume of money transfer using the Blockchain World Wire technology. More and more MNCs and retailers are being added to the list. It seems that IBM’S blockchain technology is promising and has miles to go.