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Citi and IDB Bank leveraged the EOSIO-based LACChain Blockchain Network to test cross-border payments between the US and Latin America.
Citi Innovation Labs recently completed a proof-of-concept project in partnership with the Inter-American Development Bank (IDB) for cross-border payments over the blockchain. Currently, this cross-border payments testing happens between the US and other countries in Latin America. The use of blockchain technology offers full traceability for transactions, fees, and exchange rates. To accomplish this project, Citi and IDB leveraged the EOSIO-based LACChain Blockchain Network.
This blockchain helped to power payments from the IDB headquarters in Washington DC to the Dominion Republic. Marcos Allende, IDB Specialist in Blockchain and Technical Leader of LACChain said:
“For the proof of concept, the IDB deposited funds denominated in dollars in a Citi account, which were hold, tokenized, and transferred using digital wallets. After tokenized, these funds were converted to local currency -Dominican pesos- with the exchange rate established by Citi. Exchange rates, payment status, and fees were traceable and transparent at all times as the transaction could be checked in the LACChain Blockchain”.
LACChain Used by Citi Powered by EOSIO
The LACChain blockchain is powered by the EOSIO blockchain network. Besides, the LACChian has recently enlisted Block.One who raised nearly $4.4 billion three years back in 2018. Before starting the testing, Citi also depicted the funds at their end. Later, the funds were tokenized and transferred using digital wallets before being transferred into Dominican pesos at an exchange rate set by Citi. Irene A. Hofman, CEO of the IDB Lab said:
“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”.
“We have learned a lot in this joint effort with the IDB about the use of blockchain technology for cross-border payments. We have demonstrated that it is possible to connect the LACChain Network with the WordLink APIs and leverage the benefits of blockchain technology,” Piotr Marciszewski, the project coordinator from Citi said in a concluding note.