The IT-company IBM is engaged in a study of the “future of money”. The technology looks the group on the various fields of application of the Distributed Ledger technology (DLT), and shall, in particular, the possible innovations in the financial sector Bitcoin & co. in its sights.
“Programmable Money: Will Central Banks take the Lead?” so in January 2018 from the “IBM Institute for Business Value” published White Paper. The authors Jed McCaleb, Lindsay Lin and Jesse Lund to investigate future fields of application for the Blockchain technology and digital currencies, and what is the role of Central banks in a wide Adaption of Bitcoin & co. – take it.
The role of the banks
Banks will play the IBM, also in the future an important role in the financial world. Because, as the intermediary that performs the functional tasks of the financial sector, banks will be wider acceptance of Kryptos still important. You provide the Paper, for a coordinated flow of cash and thus bring lenders and borrowers:
“Although the principles of the digital money are valuable and attainable, the banks continue to play a key role in the global financial system and of the institutions created in the economy.”
The role of Central banks
The debate around digital money is over, however, as the Central banks are not without a trace. A prominent Bitcoin skeptic is known to be the General Manager of the Bank for international settlements, Agustín Carstens. The Bitcoin-opponents called the mother of all crypto-currencies “, a combination of a bubble, a Ponzi scheme and an environmental disaster”.
The IBM Paper takes up to a less polemical Position. It is even possible to be discussed, the Central Bank crypto-currencies, the so-called “Central Bank for Digital Currencies” (CBDC). The Positive effects of this CBDC, the prevention of money laundering and corruption, as well as the reduction of friction losses in the transactions, according to the Paper.
The Swedish Riksbank seems to be with e-go to krona in this direction.
Financial inclusion from developing countries
The authors go further to the debate around the so-called “Remittance Costs”. Although there are already technical solutions for cost-effective sending of money abroad, the fees to be considerably higher than for domestic Transfers.
IBM, however, surges ahead with a good example: How the Tech companies in October of 2017, announced that it is collaborating with IBM, the Open Source platform Stellar. Aim of the cooperation is to be able to cost-effective Transfers, even across national borders. Proponents consider the Open-Source platform Stellar for such efforts, as appropriate, as the Ripple elimination as one of the fastest Blockchain platforms applies at all.
Although Stellar is not mentioned directly. The passage in the Research Paper on the financial inclusion of developing countries but can be regarded as an indication that the project is always enhanced.
Conclusion: crypto-COP IBM
The bottom line is that the Blockchain is no longer indispensable technology in the financial sector. The triumph of the leader of Bitcoin have shown that digital currencies can make a significant contribution to the generation of trust, transparency and security. The opportunities of financial inclusion from developing countries to be exploited in diverse ways.
So the report ends up in the highest tones for the DLT:
“The future of programmable money. While the introduction of the Blockchain is still in the development phase, it offers a huge potential to revolutionize the global financial system. No place on earth will be out of reach.“
This should be music to the ears of the Hodler, and cops.