The banking enterprises operating in the United Kingdom have thus far shown an aversion toward the idea of digital currencies. However, HSBC, which is the largest international investment banking institution operating in the United Kingdom, has proceeded to venture into the world of blockchain in association with technology giant IBM.
IBM has established its position for introducing the most disruptive technological solutions during the last two decades. But during the onset of blockchain technology, the company has yet to leave its footprint on the new horizon. To make up for the lack of blockchain integration, IBM is now working with HSBC on an advanced CBDC project that might set some new goals in the industry.
IBM’s New Crypto Project Will Allow Commercial Users to Transact E-Bonds, CBDCs, and FX Commodities
One of the biggest benefits of blockchain technology is that it allows users to conduct massive international transactions without having to pay high fees. IBM recently reported that its new CBDC project was able to transfer e-bonds, CBDCs, and foreign exchange units across two- centralized banking terminals. A spokesperson from IBM shed further light on the matter during a press conference.
The project is still in the test phase and was in the pilot stage for four months. The transactions were conducted using the hybrid cloud environment. The project was first undertaken by Banco De Franco, who wanted to test the feasibility and capacity of the digital euro. It is worth mentioning that a hybrid environment allows the public and private networks to form a connective bridge for blockchain transactions.
Mark Williamson, managing director at HSBC recently told the media that with the help of IBM, the CBDC project has been able to conduct DVP and PVP types of transactions successfully. He also explained that the innovations introduced to the project allowed the network to add features like extra interoperability to save time and manage the market risks more efficiently.
HSBC has inspired independent financial giants like Wells Fargo to take an interest in the blockchain project as well. The two financial operators are currently working on creating a blockchain equivalent to foreign exchange transfers. The project in question will allow legal tenders from USA, Canada, UK, and EU to use a digital ledger for international transactions.