New International Payment System launched!

Two leading Fin tech firms R3 in joint collaboration with some of the world's biggest banks announced a new block chain based system to process the business transactions smoothly and effectively.

According to a latest report by Reuters, ‘It is a system which makes use of the block chain technology which assists the banks in the transaction of all central bank currencies’. This new system also helps in managing and handling legal agreements between organizations by utilizing computer algorithms.

The new block chain based system was developed with Corda, R3's distributed ledger technology platform. This system can be availed by the banks to transfer digital currencies such as bank issued digital currencies.

A report submitted by Reuters stated that one of the banks named Natixis strongly believes that this new block chain based system has the potential to perform cross-border payments.

Most of the multi-national banks including Barclays, HSBC, Bank of America, Merrill Lynch, JP Morgan, Credit Suisse and Commerzbank have plans to make use of this new system. UBS, a famous Swiss Global financial services company implemented new methods to develop a "utility settlement coin", which represents some of the major currencies.

However, there are a few banks such as the European Central Bank, the US Federal Reserve and the Bank of Japan who believe that this new block chain based technology does not have the potential to handle the biggest payment systems.

Berenberg Bank, a Hamburg based multi-national investment company said that this system is an overhyped technology which contains only few success stories even though it has sufficient number of pilots.

According to a research conducted by the UBS Wealth Management, this new block chain based technology could fetch about four hundred billion

dollars of global economic value by the end of 2027.