According to Big Blue (IBM), the product aims at harnessing the stellar blockchain network and other institutions. The new financial rail can settle cross-border payments and simultaneously clear those in near real-time. The tech giant believes that the new payment system boats several advantages over traditional international payments systems such as high level of efficiency, reduced processing time, reduced taxes and destination limits.
As per the document shared by IBM, BWW (Blockchain World Wire) works by replacing all the banking intermediaries that are normally required for doing cross-border payments over a distributed network with digital assets.
The official statement on the company’s websites state –
“Two financial institutions transacting together agree to use a stable coin, central bank digital currency or other digital assets as the bridge asset between any two fiat currencies. The digital asset facilitates the trade and supplies important settlement instructions.”
IBM further says, “With the help of using World Wire APIs being indulged into banks’ existing systems, it is digital currency in which fiat currency is exchanged at bank A. The process is then carried to another bank B where the currency is converted into a second fiat currency. At last, for clearing all the transaction details are stored onto an immutable blockchain.
BWW seems to be a lot similar to the previously launched “xRapid” a product from Ripple. However, the only feature that makes it different from Ripple’s platform is that the new platform will support any cryptocurrency.
Till now, there is no official announcement from Stellar Development Foundation and IBM about the product. Not even there is any news on the social media accounts (Twitter, Facebook) for the product. Therefore, it can be assumed that the product is still not ready for the launch despite the fact that the two parties are working together. IBM despite revealing about the technology being used from Stellar has not revealed any other technical details.
Earlier in July, CoinDesk reported that IBM is working on the low-volatility stablecoin with a startup company called “Stronghold”. This new stablecoin according to the company will run on the stellar blockchain and verify transactions by making use of a consensus mechanism.
Jesse Lund, IBM’s head of blockchain services for financial institutions mentioned that time “What we really want to do is enable all sorts of digital transactional networks to settle their transactions with digital fiat currency on the same blockchain networks.”
As per recent reports, IBM is planning to showcase the product in October at the Sibos banking conference. It is also found that IBM is working on the stellar powered project since last October 2017 and it has shown interest to diversify the business applications of cryptocurrencies.