This morning via a press release, IBM announced that Batavia passed its first live pilot transactions. Batavia is a blockchain-based trade finance platform that was developed by a group of banks around the world and IBM. These banks include Bank of Montreal (BMO), United Bank of Switzerland (UBS), CaixaBank, Erste Group, and Commerzbank.
Batavia incorporates the closing of the trade and the execution of ‘smart payments.’ The smart payments are held and recorded on the blockchain and are triggered by specific events within the supply chain.
— IBM Blockchain (@IBMBlockchain) April 19, 2018
It seems the banks are pushing back at Ripple and Stellar and are building their platforms, instead of just integrating an already built platform into their system.
Commerzbank Exec, Niko Giesbert, said:
“Our joint successful live transaction demonstrates the potential of such a platform. Trade data and smart payment, which is automatically triggered by the transport data, form an important basis for risk management and financing instruments and add value to every supply chain.”
Earlier in the week, India’s ICICI bank put 250 of its customers on its blockchain platform.
Blockchain Hot, Crypto Not
A few weeks ago, the Bank of Montreal blocked cryptocurrency payments from via their Interac E-Transfer. Goes to show the larger financial institutions view of digital tokens vs. their assessment of its underlying technology. Even major banks in the U.S have completely banned their customers from purchasing cryptocurrencies via their credit cards. Which isn’t necessarily terrible given the circumstances that prompted the band.
In late-2017, many new cryptocurrency investors purchased cryptocurrency due to “fomo,” and when the market dropped sharply around mid-January, individuals weren’t able to pay their credit card bills. However, banks profit from the APR rates of these individuals not paying off their cards every month, but they must’ve seen something internally that we weren’t.
Still, many banks around the world are attempting to use the blockchain to improve their current systems that are outdated, time-consuming, and costly.
Featured Image: Fortune