On October 16, 2017, IBM launched the blockchain cross-border payment network, which is the world's first international payment network using blockchain technology. Enables real-time clearing and settlement services on a single network. Jesse Lund, vice president of global blockchain market development at IBM, said: "The implementation of enterprise-level blockchain applications marks that we have entered a new stage. Over the next five years, there will be a major shift in payment infrastructure.
On October 7, 2017, Canada's largest bank, the Royal Bank of Canada (RBC), is testing blockchain technology for funds transferred to and from the United States. Built using open-source technology maintained by the Hyperledger Blockchain Association, the new system is deployed as a base layer for RBC's existing payment system.
There are three main methods of cross-border payment: bank wire transfer, third-party payment and cash withdrawal, but they all have disadvantages such as high handling fee, cumbersome process, long settlement cycle, and large capital occupation. Due to the security, transparency and immutability of blockchain, the trust model between financial systems will no longer rely on intermediaries. In cross-border payments and settlements, blockchain can eliminate the role of intermediary banks. In the future, banks and banks can no longer pass through third parties, but realize peer-to-peer payment through blockchain technology, which not only saves the link of third-party financial institutions, but also realizes real-time arrival, convenient cash withdrawal, and all-weather payment. From a global perspective, the application of blockchain in the B2B cross-border payment industry can greatly reduce the cost of each transaction.
The blockchain cross-border payment application model actually uses the blockchain network to add traditional financial institutions, foreign exchange market makers, and liquidity providers to the payment network to build a payment gateway. Through the payment gateway, the flow of digital assets on the blockchain can be connected with the real legal currency, so that the legal currency can be converted into digital assets on the blockchain, which is convenient for subsequent payment transfers. Through the network connector in the blockchain payment network, traditional market makers, remittance banks, remittance banks and other institutions can be connected, eliminating intermediate transaction links and realizing point-to-point fast and low-cost payment.
As China has entered the era of Internet payment and has led to a wave of mobile payment frenzy around the world, foreign authoritative institutions and large financial technology service companies have also seen the future trend. In their minds, China has become a country of Internet payment. For the giants, there is no way to surpass China in Internet payment. Therefore, they began to use the blockchain as a new payment system and use virtual currency from the application context of the blockchain, so that they can "overtake on the curve", Catch up with China's mobile payment, and don't let China dominate.
At present, China is still exploring the technology of blockchain, and few institutions and enterprises have applied it in the way of compliance. It is generally known that the blockchain is still due to the speculation of "bit T coins". Therefore, Chinese fintech institutions can develop ideas and expand the blockchain to other applications, so as to facilitate more users and meet the needs of more users.