IBM announced on Monday that it is presenting cross-border blockchain payments solution which is a first international payment network. With KlickEx Group and Stellar.org, IBM is providing a breakthrough for payments technology and has started using digital currency to move money across the South Pacific.
The move will allow merchants and consumers to send money to another country in less time that will reduce the cost of making global payments.
IBM’s VP of Blockchain, Jesse Lund said that this is the next big step in the development of blockchain technology.
The cross-border payments network was announced at Sibos in Toronto which includes “12 currency corridors” that covers Australia, New Zealand, UK and smaller countries like Tonga and Fiji. Currently, Advanced Pacific Financial Infrastructure for Inclusion (APFII) members, a public-private partnership initially funded by the United Nations and SWIFT is using the payments network.
According to IBM, global banking leaders and financial institutions are participating in the network to expand its use. The blockchain will allow direct payments between two parties in any currency with maintaining security.
“with the guidance of some of the world’s leading financial institutions, IBM is working to search new ways to make payment networks more efficient and transparent so that banking can happen in real-time, even in the most remote parts of the world,” said IBM’s spokesman.
The move is a new sign of international payments solutions which is coming to market very soon, according to Lund.