Bitcoin Global News (BGN)
September 04, 2018 -- ADVFN Crypto NewsWire -- We just might see
the collapse of cross-border payments as we know them today, thanks
to IBM’s Blockchain World Wire.
If you don’t already know, IBM has
been partnered with the Stellar network, which was Jed McCaleb’s
brainchild, who some of you might already know due to his status as
a co-founder of Mt. Gox and Ripple.
Coindesk and other popular industry
news outlets have branded this offering as it were likely the
answer to driving widespread adoption of Cryptocurrencies by
businesses, for payments.
The fact is, we are not quite
there.
While, as IBM states, their
Blockchain World Wire does solve the issue of dealing with
intermediaries in cross-border payments by eliminating the need for
them, it is not a Crypto complete solution for one simple
reason.
Companies who participate can use
other methods to settle their transactions.
There is no requirement that they
use Crypto, above any other method. Specifically, IBM says that the
pair of financial institutions that are involved in each individual
transaction can decide whether to use “a stable coin, central bank
digital currency or other digital asset as the bridge asset between
any two fiat currencies.”
Furthermore, at the bottom of the
main page on the subject, IBM provides a very specific disclaimer
that says, “for those preferring to avoid the use of digital
currencies, IBM also provides alternative settlement
methods.”
While it is not entirely clear what
these alternative settlement methods are, it could be argued that
what is more important is that they exist as an option. With this
in mind, one could conclude that while this endeavor is a step in a
direction towards educating the business world about the utility of
the Blockchain, it is truly a cautious step at best.
For now, take this as a reminder
that even news in the Crypto space, is not always what it seems to
be at first glance.
By: BGN Editorial Staff
News:
IBM
Blockchain