Cryptocurrencies such as Bitcoin, Ethereum and Litecoin were in no one’s dictionary a few years ago. People used to brush away conversations with the word ‘cryptocurrency’ mentioned in them. Until recently, when cryptocurrencies started rapidly increasing in both price and value.
International companies such as IBM (International Business Machines Corporation), which is known for its hardware, have taken a huge interest in cryptocurrency. Cryptocurrencies are known to help in speeding up transactions, reducing transaction costs and saving a lot of money. IBM has recognized this opportunity and has started meeting the top cryptocurrency companies.
Last year at Sibos 2017, IBM announced the results of a partnership with the blockchain startup Stellar to help with real transactions using the cryptocurrency Lumens. This will help with the transaction clearing problems that IBM faces, to ensure that they are more efficient according to the global needs.
IBM’s head of blockchain development, Jesse Lund, leads a blockchain expert team to new grounds in terms of digital assets. Lund is positive that cryptocurrencies will be helpful in a number of ways.
“What’s happening is there’s this emergence of a new segment that could actually be one of the biggest segments, that is a permissioned but public blockchain network typology,” Lund noted about one of the many ways cryptocurrencies can help IBM.
Lund has been meeting up with central banks to persuade them to issue fiat currencies on a blockchain using IBM’s blockchain capabilities. He pointed out that Riksbank, the Swedish Central Bank, looks the most interested in moving Sweden’s cash into a digital platform.
IBM’s Indian blockchain team is led by Jitan Chandanani, who claims that IBM is already working with a number of private firms to implement blockchain solutions. He believes that these private firms have a lot to gain from the efficiency, growth and transparency that blockchain can provide them.
One example, explained by Chandanani, was that IBM worked with an SME called Catenia Technologies to help deploy Blockchain technology for Bajaj technologies to pay their suppliers. This was a solution for a broader business expansion plan, which could not have been supported through traditional financial solutions.
Studies by IBM have shown, that being more efficient meant 19 days of transaction time was saved, which helped the business prosper. The only question of doubt is the security of it all, and Blockchain is the most secure platform as of today, making this problem currently not a threat.
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