It’s a known fact that Blockchain-based technologies have transformational potential. In fact, we’ve already looked at how blockchain could impact a variety of different industries such as P2P lending and gaming. We’ve also seen how it could impact large-scale business-to-business (B2B) relationships, along with several other potential use cases.
So it makes sense to step away from the “can” and move towards the “is” as blockchain innovation is here and it’s already making its mark, not in some obscure market, but with some of the worlds biggest banks.
In an increasingly globalized world, expensive cross-border currency transfers have turned out to be an issue that distributed ledger technology can tackle immediately. Moreover, a project led by industry mogul JP Morgan Chase called the Interbank Information Network (IIN) is already showing results.
Efficiency at Its Finest
The IIN represents a more efficient and affordable way for banks to carry out US-dollar transfers across borders and institutions.
One of its core purposes is to resolve issues surrounding problematic payments, i.e. those which are currently being held up for up to 48 hours for compliance or corrective reasons. By using the IIN model, these payments could be executed almost instantly. For international businesses and global citizens, this a literal game changer, removing a roadblock that has filled daily life with all sorts of compromises.
Speaking on the matter, David Treat, the head of Accenture’s capital markets blockchain practice, noted:
“Certainly from a size of ecosystem perspective and starting to do something in production, having so many banks participate and some of the world’s biggest banks is a big deal.”
According to Umar Farooq, the head of blockchain at JPMorgan, though, the technology will open up new possibilities — ones that haven’t been available or even possible before its emergence.
“Blockchain is frankly a great technology, however, I’m not sure that the initial hypothesis that everyone had about saving significant sums of money is where you’ll see a lot of the new products being developed. […] It will be much more about doing things that could not be done without blockchain technology, creating new products . . . When you look at it purely as an expense saving mechanism that limits the potential of the technology.”
While JPMorgan’s IIN is amongst the biggest solutions to watch, other financial institutions have also implemented blockchain-based technology. Japan’s biggest bank recently announced that it will be using Ripple’s xCurrent platform for cross-border payments to Brazil.
AERUM: Opening Up Possibilities
If blockchain is to be integrated into widespread, day-to-day usage and suitable for the intensity of cross-border payments, it needs to massively improve its scalability and speed.
This is what AERUM excels at.
It provides a lightning fast, scalable blockchain platform which is entirely free for the end user. Its network is entirely compatible with Ethereum, the industry’s forerunner while offering 25x more throughput.
AERUM also provides on-demand scalability, bringing forward unparalleled flexibility and efficiency based on the particular needs of the application. It has virtually unlimited scalability, delivering anywhere from 500 to 100,000 transactions per second.
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Do you think blockchain technology has application in cross-border payments? Don’t hesitate to let us know in the comments below!