IBM Said To Be Researching Bitcoin Technology
Source close to the company told Reuters that IBM is developing ‘blockchain’ technology
IBM is looking into adopting Bitcoin technology to introduce a digital cash system for major currencies, according to reports.
A person familiar with the matter told Reuters that IBM is looking into the ‘blockchain’ – technology which creates a list of a digital currency’s transactions.
Reuters said that the blockchain is seen as Bitcoin’s most highly regarded technological innovations, as it allows user to transact anonymously away from government regulations.
‘Bitcoin without the Bitcoin’
The source said: “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,”
“It’s sort of a Bitcoin but without the Bitcoin.”
IBM’s development is in the early stages, the source notes, but it is unclear whether the system is going to be a new blockchain or an existing infrastructure.
“These coins will be part of the money supply,” the source said.
“It’s the same money, just not a dollar bill with a serial number on it, but a token that sits on this blockchain.
“We are at a tipping point right now. It’s making a lot more sense for some type of digital cash in the system, that not only saves our government money, but also is a lot more convenient and secure for individuals to use.”
Comment
If IBM is going ahead with a blockchain development, the technology will be another feather in IBM’s reinvention hat. The company is currently trying to reposition itself as a cloud-first company, ploughing ahead with research into IBM Watson supercomputing, Bluemix cloud app development, and global data centre expansion with SoftLayer.
Last month Dell revealed it will be accepting payments through its UK online store via Bitcoin.
The company is partnering with payment processor Coinbase to bring the technology to the UK and Canada following a successful launch in the US last summer, which saw one transaction of more than $50,000 worth of the cryptocurrency.
The news makes Dell the largest retailer in the UK to accept Bitcoin as a form of payment.
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