Based on this article from Bloomberg, financial institutions are all integrating blockchain solutions for global, cross border, B2B transactions. The only decision left for financial institutions is to choose the right vendor: In the quest for a faster and more traceable way to transfer money internationally, banks were gravitating a few years ago to Ripple, a platform backed by Silicon Valley luminaries and global financial institutions.
Now it’s gotten complicated. New options are surfacing that, like Ripple, use the hot technology called blockchain to send and record transactions across borders. For banks, the challenge is to agree on a standard quickly to fend off rivals like TransferWise Inc. and Cambridge Global Payments, which are grabbing a share of the $30 trillion a year in international transactions between businesses.What isn’t included is an understanding of how compliance and disclosures will be accomplished, something that blockchain doesn’t account for. This is not just for fintech start-ups either. Payment stalwarts are getting into the game as well:
This year, Visa will debut a blockchain-based network that will let businesses pay each other through their banks in near real time. The network uses blockchain technology from San Francisco-based startup Chain.
Overview by Sarah Grotta
, Director, Debit Advisory Service at Mercator Advisory Group
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