IBM plans to create a payment system based on the cryptocurrency Bitcoin. This is the way, the company is trying to learn progressive advanced technologies and avoid competition with the existing electronic payment systems, experts say. But, of course, IBM has certain doubts and space for brainstorming, because the projects requires pretty serious budget while return on investment in the short term is questionable.
According to the source, IBM plans to borrow the idea from the fundamental principle of Bitcoin - block of chain (blockchain). Blockchain brings all currency data about confirmed transactions in special blocks that are formed into chains later. This helps to speed up the transactions and provide its anonymity and independence from financial institutions.
Thus, the American corporation will offer users the ability to directly transfer money and pay for goods without payment of fees to banks and other financial institutions. However, IBM will not develop its own cryptocurrency, but will focus on operations with the existing physical currencies, including USD and EUR. To add, unlike Bitcoin, system is not planned to be fully independent. IBM expects to create a central control mechanism and is already engaged in informal discussions with a number of financial institutions, including the US Federal Reserve Bank.
In addition, according to a source, the system will not be anonymous. Chain blocks are going to be bind to a specific user's bank account, and access will be provided through a special digital wallet. To register a wallet, person would be obliged to provide real personal information, like name, address, ID etc.
IBM proves to be progressive company, because it is definitely smart move, decide to be among the first to enter the market with blockchain-systems, it is a great way to be a little different in the field and possible to avoid competition with the already existing mechanisms of electronic payments. Based on the blockchain payment service, IBM will have a good level of safety and it will help to avoid bank charges when making transactions.
According to managing partner of consulting company Ledra Capital Anthony Polemitis, blockchain technology can be used to store and transmit a variety of information in 89 areas of financial activity. However, today most active principle of the blockchain is used for transactions with cryptocurrency, and it is perceived extremely ambiguous in the world.
For example, one of the founders of PayPal, Peter Thiel believes cryptocurrency is the future of financial market and payment system itself already allows US users/residents to buy digital content with Bitcoins. Another example, since September 2014, you can pay for any Microsoft service/product with Bitcoins. Google corporation also plans to directly integrate Bitcoin into their payment system, Google Wallet, even New York University, MIT and Duke University have added classes about crypto currency into their business programs, and MIT even has its own Bitcoin Club and long-term plans and experiments with BTC.
At the same time, in early 2014, the Central Bank of Russia has warned users from using cryptocurrency calling operations "speculative" and contributing to money laundering, and fining any crypto currency activity, however in the beginning of year 2015, two bitcoin exchanges and three crypto websites were blocked.