Blockchain: Milestone for Modernizing Cross-border and Cross-currency transactions

Banking CIO Outlook | Wednesday, July 10, 2019

As an innovation tailored for cross-border and cross-currency transactions, blockchain has been emerging as a perfect solution for the modern financing and banking bottlenecks. 

FREMONT, CA: Across the past few years, worldwide companies and international trade have risen sharply, contributing to an acceleration in cross-border payment transactions in exchange. There are a couple of limitations in the cross-border payment sector, and this is where blockchain technology comes into play. Most financial organizations are now turning to blockchain alternatives to assist in delivering immediate, reduced cost, more reliability, and higher safety cross-border payments. Blockchain solutions guarantee unchangeable and precise cross-border payments.

DLT can assist solidify currency swap formation, even among partner central banks that may have reason to doubt each other. DLT and blockchain enable banks to instantly handle transaction across borders, enabling much-needed funds to flow rapidly in moments of crisis. However, beyond that, there is a tacit recognition that some of the bitcoin values and the cryptocurrencies it created have paradoxically addressed important points of weakness in the global financial system's development.

Up-to-date DLT experimentation in the financial industry has been motivated mainly by big and well-resourced financial institutions seeking to replace or retrofit private financial infrastructure for the advantage of their customers and shareholders. This focus may include important possibilities to enhance publicly operated financial infrastructure or implement new, cooperative public-private financial infrastructure-based initiatives.

The development of e-commerce and m-commerce has led to a drastic increase in the need for cross-border payments, and in order to survive in our ever-globalized setting, every company requires access to banking without boundaries. This eventually results in cross-border blockchain payment solutions.

Weekly Brief

Read Also