Today the Inter-American Development Bank (IDB) announced it had executed a cross-border payment using blockchain as part of a proof of concept involving Citi Innovation Labs. The solution used the LACChain blockchain network, a public permissioned consortium blockchain for Latin America and the Caribbean backed by IDB. Separately, LACChain also announced a partnership with Quant, the creator of Overledger.
In terms of the Citi payment trial, IDB deposited money in its U.S. Citi bank account. Using Citi’s WorldLink payment APIs, the blockchain accessed the money, tokenized it and made transfers with a digital wallet.
After the money was tokenized, “these funds were converted to local currency – Dominican pesos – with the exchange rate established by Citi. Exchange rates, payment status, and fees were traceable and transparent at all times as the transaction could be checked in the LACChain Blockchain,” said Marcos Allende, IDB Specialist in Blockchain and Technical Leader of LACChain.
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