Several international banks have signed a protocol of intent in order to issue stablecoins linked to national currencies on IBM's Blockchain World Wire (BWW) payment network, Cheddar reported yesterday.
The banks that want to launch their own token on the IBM's platform include Brazil's Bradesco Bank, South Korea's Bank Busan and the Philippines’ Rizal Commercial Banking Corporation. However, according to Jesse Lund, vice president of blockchain initiatives of the company, the information about the other banks taking part in the initiative has not been revealed yet. Nevertheless, it is already known that some of them are interested in launching stablecoins backed by the Indonesian rupee and the euro.
The BWW initiative, jointly developed by IBM and Stellar, was announced in September last year. More than 44 banks have joined it since then.
By using the XLM token as a settlement tool for fiat coins, BWW aims to eliminate traditional banking intermediaries, who are responsible for making international transactions so expensive and complex. The system currently supports more than 47 currencies for payments between 72 different countries.
Jesse Lund has suggested in the past that IBM might launch a stablecoin focused on the banking sector.
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