Jessie Lund, the head of Blockchain at IBM, in an interview, drew parallels between SWIFT’s SWIFT global payment initiative and Ripple’s xRapid and claimed that IBM’s World Wire payment services were better than both the services.
SWIFT’s GPI, which is its incremental update to their payment messaging system, essentially provides instructions to banks that are then carried out on a “deferred net basis.” Lund said, “SWIFT is not a settlement at all.”
“World Wire’s novelty in the blockchain space regarding settlements is that payment messaging and instructions for settlements can happen in real-time. Hence driving all sorts of efficiencies into the process mainly because you’re doing things on one network, i.e. reconciling information and post fact isn’t necessary.”
World Wire is a cross-border payment settlement system developed by IBM that allows cross-payment settlements in near real-time using digital asset. The platform is developed on Stellar’s blockchain network, and since all this happens in a single network, it would decrease the time required to process the settlements with increased efficiency.
xRapid uses XRP for providing liquidity to settle cross-border payments, which is equivalent to physically moving money. Jessie Lund agreed that with the innovative design by Ripple saying,
“Give credit to Ripple when the credit is due for creating the design model.”
He added that World Wire takes a much more “open approach” in selecting digital assets which act as settlement instruments and that World Wire is “leveraging expertise and relationships with central banks” around the world to create an ecosystem of a bunch of alternative settlement instruments.
Among the available alternate settlement instruments, counterparties that use network can actually decide together the settlement assets they want to use. The available options are digital USD or Digital Euro, but by default, World Wire will use Lumens, as it is the native asset behind the underlying network.
“Unlike, Ripple’s xRapid, World Wire will allow a whole range of digital asset instruments for future swaps,” said Lund, adding that it is the “spirit behind World Wire.”
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