IBM working with US Federal banks to develop digital currency

[Possum577]

http://recode.net/2015/03/13/exclusive-ibm-looking-at-adopting-bitcoin-technology-for-major-currencies/

I just read that IBM is developing blockchain-similar/copied technology and working with the US Federal Reserve banks to organize a centralized version of bitcoin. Have you all read this yet? Sorry if I'm rehashing old news - the article is dated end of May but I don't recall a discussion here.

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International Business Machines Corp is considering adopting the underlying technology behind bitcoin, known as the “blockchain,” to create a digital cash and payment system for major currencies, according to a person familiar with the matter.

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 person said. 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 authorization to discuss the project in public.

The blockchain — a ledger, or list, of all of a digital currency’s transactions — is viewed as bitcoin’s main technological innovation, allowing users to make payments anonymously, instantly, and without government regulation.

Rather than stored on a separate server and controlled by an individual, company, or bank, the ledger is open and accessible to all participants in the bitcoin network.

The proposed digital currency system would work in a similar way.

“When somebody wants to transact in the system, instead of you trying to acquire a bitcoin, you simply say, here are some U.S. dollars,” the source said. “It’s sort of a bitcoin but without the bitcoin.”

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[bit1]

http://recode.net/2015/03/13/exclusive-ibm-looking-at-adopting-bitcoin-technology-for-major-currencies/

I just read that IBM is developing blockchain-similar/copied technology and working with the US Federal Reserve banks to organize a centralized version of bitcoin. Have you all read this yet? Sorry if I'm rehashing old news - the article is dated end of May but I don't recall a discussion here.

------
International Business Machines Corp is considering adopting the underlying technology behind bitcoin, known as the “blockchain,” to create a digital cash and payment system for major currencies, according to a person familiar with the matter.

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 person said. 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 authorization to discuss the project in public.

The blockchain — a ledger, or list, of all of a digital currency’s transactions — is viewed as bitcoin’s main technological innovation, allowing users to make payments anonymously, instantly, and without government regulation.

Rather than stored on a separate server and controlled by an individual, company, or bank, the ledger is open and accessible to all participants in the bitcoin network.

The proposed digital currency system would work in a similar way.

“When somebody wants to transact in the system, instead of you trying to acquire a bitcoin, you simply say, here are some U.S. dollars,” the source said. “It’s sort of a bitcoin but without the bitcoin.”

Could be, Because look that IBM almost always  has been focused to corporations in the last years.I could bet that not only IBM but others Big Companies of computer industry are watching it type of blockchain technology and they will include it or any part of this on theirs projects.

[rayhan]

Not only IBM , other big companies are rooting towards the blockchain like technology . Since there is no government involved in it , and free of any transaction fee. And the technology is kind of user friendly , without any authorities involved.  The digital technology is growing rapidly and companies need to be at pace with it.

[maku]

I think there will be more companies trying to develop their own digital currency's. Some are probably doing it right now without even telling media about it. In the future wealthy countries will use only digital currency's, but how many of those currencies will remain on the market we will see.

[AtheistAKASaneBrain]

As predicted, they will try to develop their own bastardized version of Bitcoin, open closed and centralized. How dumb is that if you think about it. One of the main reasons Bitcoin is cool is the decentralization of it.
I hope that once this goes mainstream people see the scam that the goverment is trying to come up with and the migrate into BTC.

[n2004al]

It was a wonderful thing for the american economy, I think, if this news will be verified. Having The United States as money (or something like that), a currency based at the same technology like that from which is created bitcoin, it will be a great benefit for all. The qualities of such product are to many. Remain to see if this kind of money will replace us dollar (not now but in the future) or will be used besides it. According to the news at the main post will be something that will replace the us dollar in various transactions but in the future the idea and the use of this "new tool" can advance and replace the us dollar.

In this way the Unite States will have a new money. A money based at the technology of bitcoin. Which will be like bitcoin. Only that will be not currency of the world as it is bitcoin by centralized and owned by Federal Reserve.

Anyhow the introduction and the real use of this new thing implies to many interrogations if it will be used as a new currency. It will be totally new, will have new (money) characteristics and needed new monetary policies to be used with it. I like this news and I am very curious if it is true and when (and if) will be verified practically. I think that if this new currency will be introduced in the United States will reinforce its economy.

[Miss Fortune]

http://recode.net/2015/03/13/exclusive-ibm-looking-at-adopting-bitcoin-technology-for-major-currencies/

I just read that IBM is developing blockchain-similar/copied technology and working with the US Federal Reserve banks to organize a centralized version of bitcoin. Have you all read this yet? Sorry if I'm rehashing old news - the article is dated end of May but I don't recall a discussion here.

------
International Business Machines Corp is considering adopting the underlying technology behind bitcoin, known as the “blockchain,” to create a digital cash and payment system for major currencies, according to a person familiar with the matter.

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 person said. 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 authorization to discuss the project in public.

The blockchain — a ledger, or list, of all of a digital currency’s transactions — is viewed as bitcoin’s main technological innovation, allowing users to make payments anonymously, instantly, and without government regulation.

Rather than stored on a separate server and controlled by an individual, company, or bank, the ledger is open and accessible to all participants in the bitcoin network.

The proposed digital currency system would work in a similar way.

“When somebody wants to transact in the system, instead of you trying to acquire a bitcoin, you simply say, here are some U.S. dollars,” the source said. “It’s sort of a bitcoin but without the bitcoin.”

I think there are more working to develop digital currency not just the IBM.
I think IOC and other banks  they making it happen to make the future to be more convenient.

[neonshium]

Making a new digital currency is absolutely meaningless to compare with bitcoin. Any government or bank creates a new digital currency that fall again into centralization. Again controlled by a third party. So, bitcoin is the only solution for all the people around the world to get a real meaning of money.

[qiwoman2]

If they want to develop this it may be to use the technology for military purposes and not strictly for civil and commercial use. All things corporate in the U.S must have some military connection in order to be deemed profitable.

[Denker]

A centralized and controlled version of a digital currency backed by government is nothing different than the actual fiat money system. I mean almost 95% of the fiat money is digital.
That is going in circles in my opinion. But let them do if they want to.I will not use that shitty crap.

[coinplus]

A centralized and controlled version of a digital currency backed by government is nothing different than the actual fiat money system. I mean almost 95% of the fiat money is digital.
That is going in circles in my opinion. But let them do if they want to.I will not use that shitty crap.

Yes they are starting afresh again but this tie in the name of cryptocurrency. They completely forget the main objective of bitcoin. What is the need of another currency which is backed by a government or bank. We need financial freedom from the governments who suck our money.

[gentlemand]

A centralized and controlled version of a digital currency backed by government is nothing different than the actual fiat money system. I mean almost 95% of the fiat money is digital.

Try telling that to a significant percentage of the people posting on here. They cannot wrap their heads around that simple fact.

[thejaytiesto]

A centralized and controlled version of a digital currency backed by government is nothing different than the actual fiat money system. I mean almost 95% of the fiat money is digital.
That is going in circles in my opinion. But let them do if they want to.I will not use that shitty crap.

It's called marketing and rebranding. THey will launch the same old shit with a different smell and sell it as the next big thing in hopes people ignore Bitcoin and go for the "official" alternative. Bitcoin needs to spend a lot in marketing too, let's not forget how marketing can win battles even if the advertised product is objectively worse than an alternative.

[Abiky]

It's funny to see how the majority of banks and companies are interested only in the Blockchain technology instead of the coin itself (Bitcoin). And now, banks are trying to make a digital currency to have better control of your money and manipulate the price. A centralized digital currency might not be a great idea considering the fact that governments can spy you more on the public ledger. Still, this is some interesting news after all considering the fact that thanks to Bitcoin's technology, banks and companies such as IBM found inspiration to make a digital currency similar to Bitcoin. Just my opinion. Please correct me if I'm wrong.

[hashman]

The important question to ask is, can I counterfeit it ad infinitum at effectively zero cost? 

[christycalhoun]

Centralized digital currency is the same as fiat. What is the point in that?

[Luqman]

Such a good news..

[n2004al]

Centralized digital currency is the same as fiat. What is the point in that?

First of all because this kind of money cannot be manipulated or, in the worst of cases, can be manipulated very few and always way much less than the actual fiat money and only for a temporary time (not forever). If manipulated it will be restrictions in the near future so it will be very hard that this manipulation be true. The production of a digital coin is regular and controlled by its technology of production and not from the will of the human person which will govern the Central Bank. Then this kind of money will condition all the economy to move away with other rules. Rules which will be defined from this kind of money. There must be other things but these will depends from the amount produced in a determined time, the time of the production of one block, the final amount of digital coin which will be produced (is fixed or infinite) etc.

Problem remain the physique form of this kind of money because can be abused with it if it will be in the same amount with the amount produced by the technology used to produce the digital coin. But this form of this currency can be replaced totally with the debit and credit card and this will create a pure cashless economy. There must be other problems connected with this kind of economy based in such kind of currency but for sure this economy will suffer less or at all (if realized correctly) from the economic crises.

[gentlemand]

Centralized digital currency is the same as fiat. What is the point in that?

First of all because this kind of money cannot be manipulated or, in the worst of cases, can be manipulated very few and always way much less than the actual fiat money and only for a temporary time (not forever).

They'd go digital to smooth out transactions and transfers. Do you honestly think they'd give up the ability to create more or debase it? That's the whole point for them and a infinitesimal numbers of the regular folks who use it are aware that it happens and that it impacts them. It's not as if such money would ever be mineable or its creation publicly verifiable either. It'll be just as it always was but will simply work better on a day to day basis.

[n2004al]

Centralized digital currency is the same as fiat. What is the point in that?

First of all because this kind of money cannot be manipulated or, in the worst of cases, can be manipulated very few and always way much less than the actual fiat money and only for a temporary time (not forever).

They'd go digital to smooth out transactions and transfers. Do you honestly think they'd give up the ability to create more or debase it? That's the whole point for them and a infinitesimal numbers of the regular folks who use it are aware that it happens and that it impacts them. It's not as if such money would ever be mineable or its creation publicly verifiable either. It'll be just as it always was but will simply work better on a day to day basis.

I'm not an specialist in this field so my words cannot be reliable but I think that its impossible and cannot be possible in any way to produce digital coins without the verification and the inability to violate the rule of exact production of an amount of coins in a determined and not possible to be manipulated period of time. If this rule can (exist any possible way to) be violated this product will be not more a peer to peer technology product but another thing which will be not a digital coin but - using one your expression written in an post a few time ago - a token coin. Like the coins produced by any game developer. This kind of money can be produced by anyone and I don't think that Federal Reserve will want such kind of money to replace the us dollar. Anyhow I am not talking about this kind of money and I don't think that the Federal Reserve and IBM are discussing together to create such digital token. They are studying blockchain and if will create a clone or something similar to it based at peer to peer technology and at blockchain technology the output of this effort will be a digital coin (like bitcoin) and it will have its main or overall characteristics.