At long last, it looks like banks may have discovered a way to solve their cross-border payments issue. It’s in the news that JPMorgan Chase, an American bank has experimented and is seeing results via its INN (Interbank Information Network).
The INN is a platform for banks to move US dollars across borders in no time. One of the major factors which contributed to the realization of the new system is that across the border funds don’t get transferred quickly and smoothly. It gets stuck in traffic for several days due to compliance issues or some other errors. With the new platform, funds get transferred as soon as possible.
The Interbank Information Network project is rapidly progressing towards a higher level, in essence, this means that the projected $1.7 billion spent on several blockchain projects is bringing dividends.
David Treat, the managing director of Accenture, an international management professional and consulting services firm said on the subject, ”Certainly from a size of ecosystem perspective and starting to do something in production, having (so many) banks (participate) and some of the world’s biggest banks is a big deal”
Furthermore, Mr Treat went on to say that until the end of the last year, 2017, ”everything was experimental and prototypes, production was something small and safe in the corner… what we have seen this year is a move to real production. And now the first of those ecosystems is taking on real-life use cased”.
Treat projects that he sees real value head, regarding several blockchain projects that are already in motion.
Meanwhile, Umar Farooq, the head of blockchain projects at JPMorgan Chase feels that financial institutions don’t believe that the Interbank Information Network can help reduce transaction costs, “Blockchain is frankly a great technology, however, I’m not sure that the initial hypothesis that everyone had about saving significant sums of money is where you’ll see a lot of the new products being developed”.