Forbes: Visa Launches Blockchain System for International B2B Transfers to Compete with SWIFT

  • Yuri Molchan
    📰 News

    💳🐙The Visa giant has launched a blockchain product to enter the $125 trln market of B2B money transfers💸📨


Forbes: Visa Launches Blockchain System for International B2B Transfers to Compete with SWIFT
Contents

The global giant in the sphere of fund transferring is about to enter the market of B2B transactions that is evaluated at $125 trillion. To work in the new sphere, Visa is launching its own blockchain product, which is expected to make transactions cheaper and add transparency. Besides, Visa will be able to conduct them much faster.

The market is dominated by SWIFT

The majority of transnational payments at the moment are conducted by the Swift system, a Belgian-based giant founded in the early 1970s. It has over 11,000 financial organizations on its member list. Swift is also the company that Ripple opposes and is doing its best to take over on the market.

It has been acknowledged already that the traditional Swift system has numerous flaws (mainly that money transfers take too long to reach their destinations) and for this reason Ripple is competing with it. Visa now intends to do likewise.

However, back in 2017, Swift launched a new fund transferring service dubbed GPI. Since it started, almost all financial transactions are now done within 24 hours, as per Harry Newman, the chief of banking at Swift. 3,500 banks are currently using the service, which moves about $300 bln per day – 50 percent of Swift’s total daily volume.

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Visa enters the market with blockchain

Visa is also working to raise the speed of transfers for its clients and make them more transparent. A short time ago, it launched Connect, a B2B DLT product, writes Forbes in its recent article.

The newly released blockchain software uses direct bank connections. Money transfers now go and reach their recipients faster, taking 1-2 days to settle.

The new product of Visa is based on Hyperledger Fabric, the Linux-based DLT software built by IBM. Despite the fact that blockchain is used here, unlike cryptocurrency platforms, the Visa B2B Connect service is centralized.

To find more clients, Visa is now partnering with FIS, a payment processor, working with over 20,000 financial organizations.

Cover image via u.today
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About the author

Yuri has worked in crypto since 2017. A translator, quickly became a crypto enthusiast. He has worked for several Telegram channels covering cryptocurrencies. Currently is a news writer, covering crypto and blockchain-related topics.

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Wall Street Is Extremely Bullish on Facebook’s Cryptocurrency  


Wall Street Is Extremely Bullish on Facebook’s Cryptocurrency  
Contents

Social media juggernaut Facebook is about to launch its Libra cryptocurrency, which, as expected, is currently on everyone’s lips.

According to a recent CNBC report, financial analysts appear to be on the same page when it comes to bullish Facebook predictions.   

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The talk of the town

There is a schism in the cryptocurrency community concerning Facebook’s foray into crypto. While some think that Facebook undermines Satoshi Nakamoto’s vision of a decentralized cryptocurrency, prominent influencers, including Mike Novogratz and Anthony Pompliano, look at the bright side.

On the flip side, major Wall Street players seem to agree that Facebook’s stock will see plenty of love once the company unveils its much-talked-about crypto project.

SunTrust, MoffettNathanson, Bank of America stick with a “buy” rating on Facebook.

MoffettNathanson goes as far as claiming that the Mark Zuckerberg-led company aims to become the biggest e-commerce platform on the planet.

We believe a Facebook cryptocurrency-based payments system could be especially useful in countries with high inflation/unstable banking systems and for cross-country remittances. So, Facebook’s commerce ambitions do not appear to be limited to developed markets. Rather, Facebook has its eyes set on becoming the world’s leading ecommerce platform as well.”

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Not the right company?  

As reported by U.Today, Facebook joined forces with VISA, Paypal, and a slew of other startups that became part of the Libra consortium for a whopping $10 mln fee.

The company itself remains radio silent about its crypto ambitions, but there have been countless reports on that topic since December.

We are about to see a fiat-pegged stablecoin that will be integrated into Facebook, Instagram, and WhatsApp.

After being plagued with huge data scandals, Facebook will probably have a hard time convincing regulators to green-light its new cryptocurrency. Hence, it might be a promising idea, but not the right company to pull it off.

Cover image via u.today
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About the author

Alex Dovbnya (aka AlexMorris) covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. When he happens to take a break from crypto, Alex delves into cognitive linguistics (metaphors can be fun too!).

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