The article below was written by Helen Partz, who is passionate about learning languages, cultures, and the Internet. She has years of experience working on international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.
If you have ever transferred money to anyone overseas, you know that the current money transfer system is old, slow, expensive, and needs to be updated?
Two of the biggest reasons for this is the system in one country usually does not communicate with the system in another country, and there is normally a transfer from one currency to another.
This slows down the transfer and adds the cost of handling and money transfer fees.
We Welcome A Cross Border Money Transfer System Based on Blockchain
With the countries involved in the money transfer being on the same Blockchain, it will speed up the process and lower the fees because there will be no need for a money transfer.
The individual or business receiving the transfer in the destination country can choose to convert the transfer to the local FIAT Currency or accept it in cryptocurrency.
JP Morgan Chase has been using their own Cryptocurrency exchange to transfer money overseas for their wealthy clients and business customers since 2019.
When JP Morgan Chase’s CEO, Jamie Dimon was questioned about it, he said “JP Morgan transfers trillions of dollars a day overseas, our system is faster and cheaper than the traditional money transfer system.
Unfortunately, JP Morgan only allowed their wealthiest and business clients to use their system. It is not available to the working man and woman.
The collaboration between JP Morgan and Singapore’s largest bank DBS appears to be a platform designed to service bank-to-bank cross-border transactions and leaves the working man and woman to continue to use current money transfer systems.
As always, conduct your own due diligence so that you make an educated decision instead of one based on emotions.
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JPMorgan and DBS to launch blockchain cross-border payment platform
JPMorgan and DBS’ new blockchain interbank platform is designed to complement central bank digital currency projects.
Major American investment bank JPMorgan is working with Singapore’s largest bank, DBS, and state investment firm Temasek to launch a new blockchain company focused on global payments and interbank transactions.
Dubbed Partior, the new firm will use blockchain technology and digitize commercial bank money to reduce the existing friction in cross-border payments, trade transactions, and foreign exchange settlements.
Such functionality would enable instant settlement of payments for various types of transactions, helping banks overcome global payment-related challenges in the current financial system, JPMorgan said in a Wednesday announcement.
The new platform builds on JPMorgan and Temasek’s past work as part of Project Ubin, a blockchain-based multi-currency payment initiative initiated by the Monetary Authority of Singapore in 2017. Partior’s platform will launch with a focus on facilitating flows mainly between Singapore-based banks in both the United States dollar and the Singapore dollar, aiming to extend service offerings to other markets in various currencies.
The platform aims to complement ongoing central bank digital currency projects and use cases, the announcement notes. MAS chief fintech officer Sopnendu Mohanty said that Partior provides a foundational global infrastructure for transacting with digital currencies. “The launch of Partior is a global watershed moment for digital currencies, marking a move from pilots and experimentations towards commercialization and live adoption,” he said.
DBS CEO Piyush Gupta stated that blockchain technology and smart contracts will enable Partior to support “real-time cross-border multi-currency payments, trade finance, foreign exchange and DVP securities settlements on a world-class platform, with programmability, immutability, traceability built into its suite of services.”
All three Partior project participants are consolidating their involvement in the cryptocurrency industry. In late 2020, DBS established a crypto exchange division called DBS Digital Exchange allowing investors to trade major coins, such as Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and XRP.
JPMorgan reportedly started hiring Ethereum developers in April. The company is also rumored to be preparing to launch an actively managed Bitcoin fund. As reported in March, Temasek is allegedly a Bitcoin investor.