Cryptocurrency has gone too far from the initial expectations. Its influence on today’s financial industry is so high that it’s no exaggeration to say that cryptocurrency might replace fiat currency. The impact caused by cryptocurrency is so subtle that a new wave of cross over between cryptocurrencies and fiat currencies took place.
In a recent press release, IBM launched a very ambitious project called IBM Blockchain world wire. It is a payment network that uses stellar blockchain. The main aim of the IBM blockchain world wire is to increase foreign exchange and cross border payments. The main advantage of this mode of payment is that it requires no intermediaries.
However, to maintain a foreign exchange like IBM blockchain would wire solely on cryptocurrency transactions is a bit difficult. To overcome this inconvenience, IBM took the project to a whole new level by signing six banks to issue stablecoins on the stellar blockchain. The idea of launching a fiat backed stablecoins is unique and also risky. But the response the project received shows its positive acceptance. Of the six banks that signed the project, three are based on South Korean and Philippines RCBC. The rest of the three are based on Indonesian Rupiah and also euros.
Along with introducing fiat backed cryptocurrency, World-Wire is a first of its kind payment network in a lot of intriguing features like integrated payment messaging, allowing the users to choose from a variety of crypto assets etc.
But the one thing that is interesting the crypto experts and analysts about World wire is its use of steller protocol. When it comes to cross border payments, steller protocol is one of the straight through the model.
However, the six banks are still longing for regulatory approval. At present the US dollar back stablecoins are being used on World-Wire. So it is evident that once the regulatory approval is made the project is going to be a success.
But the attempt by IBM to issue a fiat based stablecoin is quite revolutionary and it increased the scope for more fiat based cryptocurrencies in the future.
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