27 March 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

IBM in talks with central banks about blockchain adoption - Reuters

13 March 2015  |  15780 views  |  0 bitcoins

IBM has held informal discussions with a number of central banks about the creation of a blockchain-based digital cash and payment system for major currencies, according to a report by Reuters.

The objective is to allow people to transfer cash or make payments instantaneously using this technology without a bank or clearing party involved, saving on transaction costs, says the wire, citing a source familiar the plans.

The transactions would be in an open ledger of a specific country's currency such as the dollar or euro, said the source, who declined to be identified because of a lack of authorisation to discuss the project in public.

"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 source said. "It's sort of a bitcoin but without the bitcoin."

Both the Bank of England and the Federal Reserve have openly discussed the concept of adopting the backbone technology of the bitcoin crypto-currency as a means of creating state-backed digital currencies.

In February, the Bank of England said that the distributed ledger technology that bitcoin relies on "may have considerable promise. This raises the question of whether central banks should themselves make use of such technology to issue digital currencies."

Earlier in the month, a senior researcher at the Federal Reserve Bank of St Louis floated the idea of a government-backed 'Fedcoin' that uses a bitcoin-style protocol but the US dollar as the monetary object, combining the best of cryptocurrencies and cash.

According to Reuters, if central banks approve the concept, IBM will build the infrastructure to test the idea.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Coinbase adds support for FIX protocol as Wall Street boards bandwagon

Coinbase adds support for FIX protocol as Wall Street boards bandwagon

12 March 2015  |  7602 views  |  0 comments | 6 tweets | 6 linkedin
Bank of England could issue own digital currency

Bank of England could issue own digital currency

26 February 2015  |  19578 views  |  4 comments | 54 tweets | 29 linkedin
Fed researcher sets out vision for government cryptocurrency

Fed researcher sets out vision for government cryptocurrency

06 February 2015  |  19603 views  |  5 comments | 28 tweets | 20 linkedin
Regulate bitcoin, but leave the blockchain alone say banking trade bodies

Regulate bitcoin, but leave the blockchain alone say banking trade bodies

20 January 2015  |  16384 views  |  7 comments | 34 tweets | 29 linkedin
BNP Paribas: The five ways Bitcoin can shake up the financial services world

BNP Paribas: The five ways Bitcoin can shake up the financial services world

12 November 2014  |  33357 views  |  2 comments | 43 tweets | 29 linkedin
UK watchdog to investigate blockchain potential

UK watchdog to investigate blockchain potential

29 October 2014  |  8416 views  |  3 comments | 10 tweets | 9 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit abe-eba.eu

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
57413 views comments | 16 tweets | 36 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
9906 views comments | 44 tweets | 26 linkedin
MAS to roll out national KYC utility for SingaporeMAS to roll out national KYC utility for S...
9133 views comments | 29 tweets | 34 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
9013 views comments | 23 tweets | 37 linkedin
SecureKey taps IBM to put identity on the blockchainSecureKey taps IBM to put identity on the...
7465 views comments | 22 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job