IBM announced the launch of World Wire on 19 March 2019, in more than 72 countries. World Wire aims to reduce the friction associated with money transfer all around the world.
Jesse Lund, the Head of blockchain and digital currencies at IBM, elucidated on the same with Stanley Yong, the CTO at IBM. According to Lund, World Wire was an “entirely new type of payment,” designed for regulated financial institutions, including banks and non-banks.
Yong explained that World Wire works by connecting participants in a p2p network, for sharing “financial messages” and digital assets, both of which would be issued on the same network. The results of the settlement and messages are then stored on the blockchain for “audit-ability” and “transparency”.
“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.”
“The two main assets that will be available for live transactions on IBM blockchain will wire on day one are the stronghold US dollar and the Stellar Lumens”
Apart from the above, World Wire will help financial institutions communicate with each other on the network, and help fulfill payments in real-time. Additionally, payment data and the value/money will move together on the same network. Lund also explained that the focus of World Wire was to make money move faster than information today.
Furthermore, any financial institution that provides payment services, and requires the movement of money across borders, would be a candidate for IBM’s World Wire, said Lund.
Lund also explained that World Wire would immediately focus on Europe and the Asia Pacific, with support for North America being introduced later this year.
Jed McCaleb, the co-founder and CTO of Stellar Lumens, stated,
“It gives consumers the flexibility to use whatever kind of currency they want, wherever they are in the world so if you have dollars and you’re traveling you can use those dollars seamlessly in any any place in the world. You can pay out in any payout Network in the world, it makes essentially everything interoperable, makes it fast, makes money move much more like email…”
Additionally, Yong confirmed that IBM was working with central banks to help with processing faster payments.
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