The KlickEx Group, IBM, a regional financial services company, and a non-profit organization, Stellar, which supports an open source network of BlockChain, have unfolded new regional cross-border solutions for payments, with the help of BlockChain technology of IBM for providing settlement and trade clearance in real times on a single network.
In an advancement for payment technology, a network of banks and IBM have started using BlockChain software and digital currency for moving money across the borders of the entire South Pacific. The importance of the news that IBM announced on Monday, is that consumers and merchants will now be able to send money in a different country within minimum time, stimulating a payments process that normally used to take days.
The co-founder of Stellar, Jed McCaleb says; “For the first time, public BlockChain technology is being used in production to facilitate cross-border payments in multiple integrated currency corridors.The new implementation is poised to start a profound change in the South Pacific nations, and once fully scaled by IBM and its banking partners, it could potentially change the way money is moved around the world, helping to improve existing international transactions and advancing financial inclusion in developing nations.”
The banking network incorporates; “12 currency corridors”, which encompass New Zealand and Australia, along with smaller countries like; Tonga and Fiji. It will reportedly be processing up to 60% of all payments of cross-border in the retail foreign exchange corridors of South Pacific by next year.
Another significance of the news is that; is the validation of the technology of BlockChain that has been long promised extensive organizations for the financial sector, yet has been lagging to move from the concept stage to the real working world.
BlockChain that depends on a divergent network of computers for creating an indelible, transactions of tamper-proof record, is highly associated with the Bitcoin digital currency. But it can also be used in several other applications like; tracking shipment details, or in this case in recording a series of cross-border transactions.
In an example to this IBM said; that farmer residing in Samoa may quickly be able to contract a buyer staying in Indonesia, and using the BlockChain it can record everything right from farmer’s collateral to the payments to letters of credit.