[Blockchain Today Reporter Park Yohan] The giant Citi group has successfully completed a proof of concept for blockchain-based cross-border payments in cooperation with the American Development Bank (IADB), Cointelegraph reported.
According to an announcement on the 8th (local time), Citi Group’s Citi Innovation Lab and IADB have used the LACChain blockchain network exclusively developed by IADB’s local program LACChain to provide several payment methods to recipients of the Dominican Republic in the United States.
As part of the project, IADB’s blockchain expert and LACCChain’s technology leader Marcos Allende explained that as part of the project, IADB deposited tokenized funds denominated in US dollars into a Citi account and remitted using a digital wallet. “After being tokenized, these funds were converted to the local currency (Dominican Pesos), and this exchange rate was set by Citi.”
Thanks to blockchain-based experiments, IADB is able to provide instant tracking of transactions, exchange rates and fees, and potentially has a new way of making cross-border payments from the United States to Latin American and Caribbean countries.
Irene Hofman, CEO of the IADB Research Institute, said, “There are a wide range of applications for comprehensive cross-border payments, including formal development assistance and international remittances. There is no doubt that they play a very important role in our local economy, more importantly, “It is to send money to the final beneficiaries and their families.”
The IADB is an international organization that supports economic development, social development and regional integration in Latin America and the Caribbean. IADB is actively exploring blockchain technology after the IADB Research Institute for Innovation focused on the blockchain-centric LACChain program in 2019.
The open source LACChain runs on JP Morgan’s blockchain and smart contract platform Quorum.
Citigroup is not a stranger to blockchain technology. In 2015, the bank developed three blockchain-based systems and an experimental cryptocurrency Citicoin to seek more efficient cross-border transactions.
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