Citigroup and IADB test blockchain for cross-border payments – Bits Media

Банки Citigroup и Inter-American Development Bank (IADB) successfully tested the proof of concept (PoC) for making payments between the United States, countries of Latin America and the Caribbean.

Citigroup and IADB managed to make multiple payments to the Dominican Republic with using the Lacchain system, functioning based on blockchain quorum. Blockchain specialist in IADB and technical director Lacchain Marcos Allenda (Marcos Allende) reported, that, as part of the testing, IADB transferred tokenized funds in US dollars to Citigroup.

These funds were converted into Dominican peso at the exchange rate of Citigroup, and then transferred abroad using digital wallets. According to Allend, Blockchain pilot project allowed banks to instantly track transactions, and also view data on exchange rates and commissions.

There are many solutions for cross -border payments. However, CEO of IADB Lab Irene Hofman (Irene Hofman) considers, that the blockchain will allow you to make payments and money transfers from the United States to the countries of Latin America and the Caribbean in a new way, Providing high speed and transparency of calculations.

This is important not only for the end recipients of money, but for the economy in general. IADB is actively studying the capabilities of blockchain for the social development of Latin America, Therefore, in 2019 year IADB research unit - IDB Lab - began to work on creating an open Lacchain platform.

Also in 2015 year Citigroup planned to launch his own digital currency Citicoin, To simplify international payments. However, later the bank giant came to the conclusion, that current technological solutions are more effective, Therefore, he refused to launch Citicoin.