Sean Bennett wrote this article for IBM about how they applied blockchain technology to traditional fiat currencies.
They are disrupting legacy systems for transmitting value by making the entire process faster and less expensive. Their core product is Stronghold USD, a digital token that’s backed one-to-one against the US dollar by cash reserves on deposit. Unlike volatile digital tokens that are pegged or algorithmically synced to the dollar, Stronghold USD has a stable value. To help ensure that their institutional-grade regulatory technology integrates with traditional banking systems, we also offer a platform API.
In many parts of the world, people who lack wealth or live in isolated areas may not have access to financial services many of us take for granted, such as ATMs and debit cards.
Because blockchain smart contracts combine messaging with the settlement process, anyone who has a smartphone can receive or send money almost instantly. The funds arrive in Stronghold USD, which are easily exchanged with the recipient’s local currency.
The second use case similarly relies on blockchain’s ability to power transactions at lightning speed. IBM Blockchain World Wire, a multicurrency, cross-border payment rail network for the financial industry. The idea is to create a real-time, more efficient global payment system that supports regulatory compliance, privacy, security and monetary policy. Interesting read!
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