The solution offers fast, efficient cross-border payments, cutting the time for global transfers from days to just seconds. Use of a blockchain system also enables greater transparency, and the opportunity for banks to manage customer data securely.
Banks connected to the existing cross-border payment system, SWIFT, interact by opening and managing current and correspondent accounts. The main condition for the system’s smooth operation is its participants’ ability to synchronize information on account balances.
Due to geographical distribution of participants, synchronization takes a long time. As a result, international transfers normally take between one and two days. If several intermediary banks are involved and they are located in different time zones, a transfer can take as long as a week. In addition, each intermediary bank adds its fee to the total cost of the transfer.
Practically instant international money transfers are now possible. Transaction fees are dramatically reduced.