40-50 banks are expected to use IBM World Wire with Stellar technology

Put Tuesday 1.40 a.m. (UTC) on March 19th on your calendar of the top Stellar Lumens events.

Speaking to Finder at IBM Think 2019, IBM blockchain boss Jesse Lund announced that 40-50 banks will be joining IBM’s Stellar-based World Wire service in the near future.

“We have an announcement for launch soon … We’ll be supporting 50+ countries from the start, 30-40 currencies, and enough market makers to take 30 or 40 banks, so ‘I’ll cover a significant part of the world “he explained.

Several banks have already confirmed that they plan to issue digital assets, including their own stablecoins, through the Stellar-based IBM World Wire.

“We have letters of intent with several banks around the world to support and issue digital currencies, stablecoins and other currencies,” Lund confirmed.

Stellar Complete Guide: What It Is, How It Works, Where To Buy It

“Our goal is to expand this network and provide global coverage within 3 to 5 years where you can consistently send transfers instantly and at very low cost from anywhere in the world to anywhere in the world.” “

The next major announcement is expected to be on March 19th.

“I’m going to be holding a major event in Singapore with my friend Jed McCaleb (Stellar Founder) … we’re going to talk about the partnership and make a special announcement about the product,” says Lund.

This major event is most likely the Money 20/20 conference in Singapore, the schedule of which shows Jesse Lund and Jed McCaleb making a special announcement on Tuesday, March 19 at 9:40 a.m. local time (1:40 a.m. UTC).

Lund was also very emphatic in saying that central bank publicly available digital currencies are on the move.

@IBM use XLM! World Wire Interview with @jesselund – Check out the full interview at https://t.co/aqd8I86dFG pic.twitter.com/h0rBKS3cnW

– Fred Schebesta (@Schebesta) February 19, 2019

A question of liquidity: why this is so important to Stellar

Stellar was chosen for its transparency and scalability, Lund explains, as well as its ability to host a wide range of assets that can be openly traded on the Stellar decentralized exchange. A thriving, open, and smooth decentralized market for a wide range of assets is key to Stellar ‘s and IBM’ s vision for the future of payments.

This type of system opens the doors to an incredible array of benefits. For example, think about how this could shape the future of international payments.

  • Bank Transfer: They give money to a bank. The bank then sends the funds through a network of correspondent banks. It takes up to a week to arrive, fees can easily exceed $ 50, and exchange rates are set as high as possible to generate additional profits for the bank.
  • Timely money transfer: You give money to third parties. It stacks payments to offer a more competitive deal than a wire transfer, but sets its fees and exchange rates as high as possible while staying competitive.
  • Excellent money transfer: A smooth marketplace for digital assets enables instant money transfers anywhere in the world at a cost of a fraction of a cent. You want to exchange digital USD for digital EUR, someone else wants to exchange digi-EUR for digi-USD, so just make a trade. If you go peer-to-peer, you can both trade at market prices with fees as low as a fraction of a penny to cover the cost of the Stellar network. When you pool trades in a sufficiently deep market, you never have to wait for a match.

That marketplace is “really geared towards remittance use cases right now,” Lund says. In other words, it is designed to make small and quick transfers.

There is one major obstacle, however.

The global remittance business is around $ 700 billion per year. That’s more than five times the total market capitalization for cryptocurrencies. So this system needs an incredible amount of liquidity to function.

That is why this upcoming announcement is expected to be such a big deal. According to all information, Stellar and IBM will jointly announce enough new market makers and other participants on March 19 to make a major contribution to solving this problem. The end result is that Stellar is taking an important step towards real world usage and widespread adoption.

Put it on your calendar!

Learn more about how and where to buy Stellar (XLM).

Disclosure: The author does not hold any cryptocurrencies at the time of writing.

Disclaimer: This information should not be interpreted as confirmation of the cryptocurrency or any particular provider, service or offer. It is not a recommendation to trade. Cryptocurrencies are speculative, complex, and involve significant risks – they are very volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Take into account your own circumstances and seek advice before relying on this information. You should also review the nature of a product or service (including its legal status and relevant regulatory requirements) and check the websites of the relevant regulatory authorities before making a decision. Finder or the author may be involved in the discussed cryptocurrencies.

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