In partnership with the Inter-American Development Bank or IADB, a completion of a proof-of-concept blockchain based cross border payments have been completed by banking giant, Citigroup.
Using the LACChain blockchain network- Citigroup labs and the IADB enabled disbursement to the United States to a recipient in the Dominican Republic. Which has been described as a proprietary effort LACChain IADB’s regional program.
The LACChain technical leader and IADB’s blockchain specialist, Marcos Allende stated that as part of the project the IADB deposited tokenized funds in U>S dollar denomination in the account of CITIgroup and of which they transferred using digital wallets. With the exchange rate, established by Citi, after tokenized these funds were changed to local currency. , Dominican pesos.
Potentially bringing a new method of making cross-border payments from the United States to countries in Latin America and the Caribbean, the blockchain-based pilot enabled IADB to provide instant traceability of the trasanctions, exchange rates and fees.
“There are many applications of inclusive cross-border payments, such as official development assistance and international remittances. There is no doubt that they are extremely important for the economies of our region and, more importantly, for final beneficiaries and families receiving remittances,” IADB Lab CEO Irene Hofman noted.
The IADB is an international organization that supports Latin American and Caribbean economic development, social development and regional integration. The IADB has been actively exploring blockchain technology to fulfill its mission, with its innovation laboratory IDB Lab setting up its blockchain-focused LACChain program