How blockchain is becoming the 5G of the payment industry
- “I think you’re starting to see a growing consensus,” said Matt Savare, a partner who works in the technology group of New Jersey-based law firm of Lowenstein Sandler LLP .
- On the heels of JPMorgan Chase & Co. creating its own stable coin token for use on blockchain distributed ledgers, IBM last week launched its Blockchain World Wire , which will enable banks to transfer tokens and cryptocurrency in near-real time, cutting out banking intermediaries and lowering capital costs and clearing fees.
- The distributed ledger technology (DLT) network will initially enable cross-border payments and settlements based on the Stellar protocol, a decentralized payment network that uses its own cryptocurrency, Stellar Lumens (XLM).
Along with JPMorgan, IBM and its banking partners, Visa , Mastercard and New York-based global settlement service CLS bank have also deployed blockchain-based payment networks.
- Once banks are comfortable using blockchain-based foreign exchange (FX) networks such as IBM’s World Wire, and believe it’s efficient, reliable and secure, they will likely open up those payment services to business and consumer customers, Litan said.
- Along with financial services companies, companies such as Facebook are purportedly working on creating blockchain-based payment systems that would allow users have a “PayPal-like” experience to purchase advertised products.
Read full article: computerworld.com