With the Covid19 pandemic changing the perception of entities on how business is done, IBM is tapping into the international remittance environment through its IBM World Wire. According to a release seen by Cryptoinfowatch, the IBM team developed a remittance and inter-bank payment platform with the objective of tapping into the largely untapped market.
In the quest for transparency for which blockchain is known, IBM went further to make the source code of IBM World Wire open. This would give developers and access to understand how the platform works as well assess its integrity while giving them the opportunity to learn one thing or the other about what the IBM team has done.
The objective of IBM international remittance service is to reduce cost and the difficulties that are associated with remittance services.
— Denelle Dixon (@DenelleDixon) October 22, 2021
Some important features to note is that the platform was built on the stellar network. This means that the stellar native token Lumen plays an important role in the service.
The blog post made on IBM’s site stated that:All money transactions in the Stellar network (except lumens) occur in the form of credit issued by anchors, so anchors act as a bridge between existing currencies and the Stellar network
Anchors are entities the network participants trust to hold their deposits and issue credits into the Stellar network for those deposits
The credit issuance implies digital obligates which need to be settled out of band via traditional rails, for example.
The idea is to provide a choice in the network for anchors to issue credits or stablecoin for instant settlement — addressing various business cases and cost points to the ecosystem and network operator.
In practice, IBM hosts the nodes that confirm transactions through its consensus protocol while supporting money transmission of financial institutions.