Cryptocurrency companies have worked with the focus of transferring the benefits of digital assets and blockchain technologies into institutional bodies for a better working ecosystem. This was made evident with the introduction of the IBM Blockchain World Wire, a blockchain based network created by the technology giant to make cross border transactions more feasible.
In a video by IBM, Jesse Lund, the Head of Blockchain Solutions at the company, spoke about the benefits of the World Wire and what it means in terms of a global payments scale. Lund stated that over the last twenty years, just like how the internet brought people and services together, IBM plans to do the same with cross border payments and financial institutions. He admitted that the financial infrastructure has not changed for the last 50 years and that global users expect the technology to catch up with other global developments. Lund went on to say:
“The problem with global payments is that they are slow due to the friction generated by different intermediaries. This affects the end user significantly because in the end all they require is the money to reach them. This becomes even more profound for businesses who want to manage their cash flow.”
The IBM official said that the tipping point in terms of technology is coming and that the introduction of blockchain technology changes the dynamic of the financial industry. Lund claimed that the IBM Blockchain World Wire will remove the intermediaries, reduce friction and lower the transaction cost and time. He further added that the novelty of IBM’s new initiative lies in the fact that payment instructions and the actual money moved together as a sequenced set of data. The Blockchain Solutions Head also said:
“We hope to see a global financial network that will facilitate moving money from anywhere to anywhere and that is one of the most exciting concepts that we can work with right now. Just like the internet was a paradigm shift, the introduction of the World Wire is aimed to conduct the next paradigm shift in the world of finance.”
IBM’s World Wire grabbed headlines on March 19, with plans to launch in more than 72 countries. During the launch, Jesse Lund had stated:
“IBM is announcing that it is open for business in payments was support for 72 countries, 47 distinct currencies and 44 unique banking endpoints and a wide range of pay in and pay out locations around the world.”