The IBM world wire Programme is for financial institutions that wants to move money almost immediately around the world for consumers and businesses, and for other financial institutions, in a Blockchain Stablecoin programme backed by IBM
The system facilitates a Correspondent Banking Relationship for banks with every other bank in the world
Stablecoins were introduced to ensure that investors can avoid the volatility of the market and a peace of mind knowing that their funds will remain relatively stable. The swings in the crypto market makes digital assets risky store of value. The pegging to the fiat currencies gives the stablecoins stability. Fiat currencies have a tendency to remain stable over a period of time as opposed to the sudden swings in the crypto market. Every stablecoin that exists within the network has the same value of the fiat currency used and has the same value of the fiat in reserve.
THE STABLECOIN HYBRID PROGRAMME
The Stablecoin Hybrid Programme manages Stablecoin Hybrids for industry Consortia and will use Industry Stablecoin Hybrids for related Industry Blockchains. A Stablecoin Hybrid is a hybrid of a Stablecoin issued by a major financial institution and backed by the national fiat currency, and a Utility Digital Token for the Industry
The Stablecoin Hybrids come with existing significant user bases. These user bases are from clients and subscribers of Consortia members. The Stablecoin Hybrids Project, also comes with an inbuilt subscriber base across the e-Debit Network of sites which have around 1.8 million subscribers. Consortia Members generate billions of dollars in sales. As such, the Stablecoin Hybrids come with existing, working and strong go-to-market strategy and usage.
IBM STABLECOIN PROGRAMME
Six international banks will soon be issuing stablecoins backed by IBM. Three of the banks are: Philippines-based RCBC, Banco Bradesco of Brazil, and Bank Busan of South Korea. The rest will offer digital versions of euros and Indonesian rupiah. However, the one IBM backed stablecoin at the moment is a U.S. dollar-backed token created by Stronghold
There are more arrangements of this nature in the pipe line and this opens up the possibility of banks providing industry specific stablecoins, which can be used as a bridge currency for a specific industry when it is hard to trade one type of fiat for another. The intention is that these Stablecoin Hybrids would be issued by a major bank and backed by IBM.
This mechanism involves two tokens: the GBP stablecoin, which is pegged to a value of 1 GBP, and tokens for the underlying industry ancillary operation, which will fluctuate in value according to how well the ancillary company is doing.
The stablecoins function as collateral on the network. Their sale will supply an initial reserve that will help stabilize the price versus fiat. The other token, for the underlying industry ancillary operation, has transaction fees accruing to it. Every time a transaction happens on the network, a transaction fee will be paid to holders of the underlying industry ancillary operation
The Stablecoin Hybrids will be utilized on the Blockchains.Business Programme proposed for Q3 2019, which will feature a Blockchains Road Map to help people locate and connect with Business Blockchains as well as a Knowledge Base to help people understand Blockchains and how to use them.
IBM will be the network operator while Stella will be the protocol level. In terms of the role of IBM, this includes maintaining the payment API and some core system software that handles accounts and money flow for participants on the network. Everyone trusts IBM meaning many other nodes listen to its nodes about which transactions should occur.
IBM are letting the market drive the expansion and selection of the network incrementally. IBM feels that they are on a roll to build something new and revolutionary that's really going to change the landscape
IBM believes there should be a variety of digital assets to enable cross-border payments and that the network participants should be able to choose and negotiate their asset choice.
Stablecoins are very much like loyalty coins that airlines use for their own purposes. Stablecoins will turn into their own various payment networks that almost become economies in their own regard, like loyalty programs. That is the vision for Industry stablecoin Hybrids which will generate the revenues for the fees associated with them, from the ancillary industry operations which provide them with a ready made user base.
World Wire currently supports more than 47 currencies for payments across 72 countries. IBM plans to further expand the network to provide global coverage in three to five years. IBM captures a small fee of network transactions to operate and maintain it. The Stablecoin Hybrid programme will add an extra dimension, by featuring industry Ecosystems of industry Consortia, that are served by an industry specific Stablecoin that is issued by a major bank, and backed by IBM.
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