Some of the biggest banks in the world are joining the blockchain applications developed by JPMorgan, ANZ, and Royal Bank of Canada. Called Interbank Information Network (IIN), more than 75 banks have already joined the network to combat with the threat of new payment rivals. The three banks tested IIN for 11 months to check whether blockchain technology can really help in speeding up the payments.
IIN is being introduced to quickly resolve common issues that banks face such as missing data, faulty addresses, compliance checks and more. These are the general issues that held up payments for weeks. The banks want to use the enlarged network to put around $14,500 payments every day. While talking to the media, the bank analyst at JPMorgan, Jason Goldberg stated that payment is one division which worries the banks most.
According to the head of global payments and receivables at JPMorgan Treasury Services, Emma Loftus the non-banks have been complaining about friction in the process of the cross-border payment system. Loftus stated that blockchain is already addressing many such issues and such age-old problems will also get solved.
With the help of blockchain applications like IIN, it becomes easier to access all the information as it creates distributed ledger that helps the banks to track down the problem in real-time thereby allowing instant resolution of issues, said Financial Times. The application also facilitates secure peer-to-peer messaging. As the number of banks involved in the IIN will expand the number of transactions will also increase.
Most of the B2B electronic payment platforms are based on blockchain and reduce the time required for sending, clearing and settling global payments from few days to few seconds. Even then the actual users of this technology are very few, said Computer World. According to payment provider Xendpay’s CEO, Paresh Davdra, working with the leading technologies in blockchain help his company to keep its promise of maintaining the expenses of cross-border payments low.
Moreover, blockchain applications such as IIN also ensure faster and secure money transfers to multiple corridors at one go across the world. The B2B payment networks are really working well and delivering results which are why big companies like IBM (World Wire), and Consensys (Adhara) have come up with their own blockchain-based platform.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]