Cross-Border Payments with Blockchain
Peer Reviewed
Date issued
Apr 2021
Subject
Blockchain;
Digital Currency;
Digital Technology;
LACChain;
Digital Payment;
Financial Transaction;
Cryptocurrency;
Digital Asset;
Smart Contract
JEL code
G20 - Financial Institutions and Services: General;
F24 - Remittances
Category
Learning Materials
This document describes the proof-of-concept (PoC) developed by the Inter-American Development Bank, the IDB Lab, LACChain, Citi Innovation Labs, and ioBuilders to demonstrate cross-border payments between entities in different countries that involve currency exchange, using digital money represented by tokens -tokenized money- in the LACChain Besu Blockchain Network. For this PoC, Citi played the role of the bank holding the funds; the IDBs headquarters in the U.S. played the role of the sender of tokenized dollars; an individual in Dominican Republic played the role of recipient of tokenized Dominican pesos; LACChain provided the blockchain infrastructure and developed the back end, the smart contracts and the integrations; and ioBuilders provided technical advice and developed the front end.
