- SAP, the German multinational software corporation, has announced a new pilot for a blockchain-based cross-border payment system.
- The pilot uses test versions of Circle’s USD Coin (USDC) and Euro Coin (EUROC) to provide a sneak peek into a world of speedy, affordable, and transparent international transactions.
In an exciting development in the blockchain space, SAP, the German multinational software powerhouse, is launching a pilot for a groundbreaking cross-border payments system. This initiative is based on blockchain technology and employs digital assets to facilitate rapid, cost-effective international transactions.
Highlighting the transformative potential of digital assets, Sissi Ruthe, a product expert at SAP, discusses in a blog post how this innovative technology could revolutionize cross-border payments. Currently, such transactions can be burdensome for small and mid-sized enterprises with global business partnerships, characterized by steep costs of up to $50 per transaction, sluggish speeds taking up to a week, and an opaque status of transactions.
SAP’s proposed solution leverages the efficiency of digital currency and the robustness of blockchain technology to tackle these hurdles. Through the use of Circle’s USD Coin (USDC) and Euro Coin (EUROC)—which are pegged to the US dollar and Euro, respectively—Ruthe envisions a future where international transactions are not just faster and cheaper but also more transparent.
Under this innovative pilot, SAP invites clients to take a ‘test drive’ of the proposed cross-border payments system. Participants receive play versions of the USDC and EUROC to simulate invoice payment, thus gaining firsthand experience of the speed, affordability, and reliability of the proposed payment system.
Ruthe emphasizes, however, that this test drive operates on a trial network and doesn’t involve real coins, restricting it to purely experimental purposes. As such, it doesn’t facilitate actual transactions, but serves as an exciting glimpse into the future of international payments.
SAP, valued at over $163 billion and boasting a presence in 130 countries, is at the forefront of integrating blockchain technology into everyday business transactions. Its bold foray into the domain of digital currency for cross-border payments testifies to the software giant’s commitment to pioneering advanced, efficient, and transparent financial systems in the digital age.