Many industries are still trying to figure out how to use cryptocurrency to improve their services and technology. On the other hand, IBM has already started a program that allows consumers and traders in the South Pacific region to conduct cross-border transactions. The great thing about it is that although the transactions happen through traditional banking partners, they provide the speed and efficiency of the Stellar Blockchain.
Why did IBM choose Stellar?
One wonders why IBM has just opted for Stellar, where there are other solutions, such as Ripple Labs. Or why not just use Bitcoin?
Jo Lang of IBM Blockchain Financial Solutions said Bitcoin was out of the question. It is mostly minted in China, where IBM's clients are not. Leave it where it is. Regarding Ripple XRP, Lang stated that ownership was unclear. They've already worked with Ripple [Labs] and will continue to do so, but IBM needs a transparent asset.
Stellar, on the other hand, offers IBM the desired combination. It is not for-profit and has an open source program code base. In addition, Stellar has a well-developed software programming interface and the necessary technology to function. In addition, Stellar supports every type of asset on the network and is scalable. This ensures future growth, even far beyond the South Pacific region.
The partnership with Stronghold
Another reason for working with Stellar is likely to be “Stronghold USD”. This is a Stablecoin whose value is tied to the US dollar and which is based on the Stellar Blockchain. Stronghold USD is being launched by startup Stronghold, with whom IBM has also partnered.
Moving capital across borders has always been slow and costly. As part of IBM's IBM Blockchain World Wire payment program, banks use Stellar Lumens (XLM), Stellar Blockchain's native crypto currency, for land-to-land transfers.
This makes the payout via IBM almost in real time and is almost free. The banks are also relieved of their burden and do not have to spend a lot of foreign currency on nostro accounts in an expensive way.
When IBM announced its partnership with Stellar in October 2017, Stellar Lumens' share price increased 100 percent. Stellar has steadily increased its market share in the last twelve months. Rumors continue that Stellar Lumens will soon be listed on the crypto exchange Coinbase. The course of Stellar Lumens is still convincing and is one of the bright spots on the otherwise quiet crypto market.
Sources: Lumenauts, CNBC, IBM Blockchain World Wire, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/ibm-and-stellar-fordern-ripple-xrp-mit-zahlungssystem-heraus/
Disclaimer: CoinNewsDesk.com is a crypto news portal, financial discussion forum, and content curator / aggregator. Articles on Coin News Desk are provided for entertainment and information purposes only. We are not an investment advisor and do not provide financial advice.
We can not review all articles posted on CoinNewsDesk.com. Please independently research and verify any information here before relying on it as fact. It's also important to do proper due diligence and analysis, including consulting a professional financial advisor. No content on Coin News Desk makes any recommendation to enter into any type of investment or engage in any investment strategy on this website.