IBM is reportedly planning to create a new digital payments system for major currencies by implementing the underlying technology behind bitcoin, called blockchain.
The new system will allow people to transfer money and make payments instantaneously without involving a bank or another third party, Reuters reported citing an undisclosed source familiar with the development.
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The transactions are expected be in an open ledger of a specific country’s currency such as the dollar or euro. Blockchain enables users to make payments anonymously, instantly, and without government regulation.
The digital cash system could be linked to a personal bank account through a wallet software.
Digital currency system will be controlled by central banks. The company is in informal talks regarding the blockchain-tied cash system with a number of central banks, including the US Federal Reserve, according to the publication.
Following the receipt of approval, IBM will develop a secure and scalable infrastructure for the project, which is still in the early stages and constantly evolving.
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By GlobalData"When somebody wants to transact in the system, instead of you trying to acquire a bitcoin, you simply say, here are some US dollars," the publication quoted the source as saying.
"These coins will be part of the money supply. It’s the same money, just not a dollar bill with a serial number on it, but a token that sits on this blockchain," the source added.
