Tuesday, July 17, 2018

Could IBM be experimenting with the eventual replacement of the dollar through a new crypto pegged to the U.S. currency?

On July 17, IBM announced they will be teaming up with a Blockchain tech company named Stronghold to create a new cryptocurrency that would be pegged to the U.S. dollar.

According to IBM, the purpose behind their cryptocurrency experiment is to find ways to provide the banking system better and more efficient methods to be able to conduct payments, transfers, and transactions, while also solidifying the security that blockchain based processing provides for the monetary system.

IBM has teamed up with financial technology start-up Stronghold to launch a cryptocurrency that’s pegged to the U.S. dollar
The tech giant has put its weight behind a so-called “stablecoin,” a digital token that, in principle, is tied to an existing government-backed currency, in order to reduce the volatility associated with virtual currencies. 
In this case, the cryptocurrency, called “Stronghold USD,” is backed by Federal Deposit Insurance Corporation-insured U.S. dollars, IBM said Tuesday, with reserves being held by blockchain-focused asset manager Prime Trust. 
IBM said it will experiment with the virtual greenback to explore ways of helping banks and other financial institutions process payments faster and more securely. The aim of stablecoins is to reduce the volatility that is commonplace in the cryptocurrency market. - CNBC
IBM has been involved in helping to build the framework for a cashless society for many years now, and even their website boasts of a day in the near future when this will become reality.
With the growing availability of smartphones and 4G networks, there are even newer opportunities to enrich the customer experience and further enhance the convenience and security of mobile banking. As a result of increasing demand for computing power, advanced applications, and the cost effective, flexible delivery of infrastructure as a service (IaaS) and platform as a service (PaaS), cloud computing will be critical in the next evolution of mobile banking. 
In addition, cloud-based mobile application development facilitated by PaaS (such as IBM Bluemix) can enable rapid integration of advanced solutions to customer delivery. As mobile applications continue to increase in sophistication, the cloud will be at the center of what Gartner terms “the Nexus of Forces.” 
It’ll be a while yet, but maybe that cashless society won’t be a myth for much longer and song lines like “Money, get back. I’m alright Jack keep your hands off my stack” from Pink Floyd will eventually draw puzzled looks and an online search from the listener. -
IBM
With both the central and investment banks working on their own cryptocurrencies (such as Fedcoin) to first aid in the transfer of money at the financial and sovereign levels, once this becomes successful, the eventual next step will be to replace physical cash entirely with a digital blueprint, and one has to wonder if IBM's foray into cryptocurrencies is the proving ground for such a move. 

0 comments:

Post a Comment