IBM is considering adopting the Blockchain technology to create a digital cash and payment system for major currencies, according to a person familiar with the matter, as reported 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. The transactions would be in an open ledger of a specific country’s currency such as the Dollar or Euro.
The blockchain is viewed as Bitcoin’s main technological innovation, allowing users to make payments anonymously, instantly, and without government regulation.
The proposed digital currency system would work in a similar way.
IBM has been in informal discussions about a blockchain-tied cash system with a number of central banks, including the U.S. Federal Reserve, if central banks approve the concept, IBM will build the secure and scalable infrastructure for the project.
IBM media relations office did not respond to Reuters emails about this story and the Fed declined to comment.
The source of the Reuters article declined to be identified because of a lack of authorization to discuss the project in public.
What do you think about it? Reality or fantasy?