IBM partners with Stellar on South Pacific banking blockchain solution

The blockchain distributed ledger technology provides access to all parties involved when it comes to the clearing and settlement of financial transactions.

As a result, sending money in near-real time across borders becomes easier and cheaper for merchants and consumers

This step indicates IBM’s acknowledgement of the role that digital currencies play in the blockchain banking industry. In fact, Stellar’s built-in currency, Lumens will be used in order to facilitate cross-border payments, given that banks currently use foreign accounts in local currency to fulfill these transfers. The current situation leads to a slow and costly payments process.

Furthermore, Jed McCaleb, co-founder of Stellar stated: "This new innovation and collaboration represents a significant milestone for Stellar as well as the financial technology industry as a whole. We are using blockchain technology in production to facilitate cross-border payments in multiple integrated currency corridors. Currently, cross-border payments tend to take up to several days to clear. This new implementation is poised to start a profound change in the South Pacific nations, and once fully scaled by IBM and its banking partners, it could potentially change the way money is moved around the world, helping to improve existing international transactions and advancing financial inclusion in developing nations."