IBM leapfrogs into cryptocurrency – Moving beyond the Stellar Lumens [XLM] technology

IBM has come out of the closet by revealing to CoinDesk that it has been conducting meetings with executives of large corporations, trading platforms, central banks to find out how cryptocurrencies can help them generate revenue while saving money.

This news finally breaks the bubble about the inhibitions of large corporations on public use of cryptocurrencies in early-stage platforms and live applications.

IBM’s new Head of Blockchain Development Jesse Lund, who jumped from Wells Fargo earlier this year to help develop the cryptocurrency strategy in IBM said that:

“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.”

IBM has been in contact with 20 central banks exploring potential benefits of issuing their own cryptocurrency on a blockchain, although they have declined to name the banks they have met with. It has described banks that are largely comprised of G20, international forums with members including China, Russia, EU, and the US.

Lund described the relationship as:

 “most durable digital asset one that is issued by a central bank that represents a claim on fiat deposits in the real world, but still maintains some semblance of monetary policy.”

IBM is exploring further on from the Stellar network by looking into tokens divided into 3 kinds: securities tokens that give owners a stake in the issuing company, utility tokens that give users access to a service such as phone minutes and commodities tokens that represent precious metals and other physical assets.

Lund claimed that:

“IBM is seeing a move towards issuing of tokens that have higher velocity that represents, ex a claim on a vault of gold bullion.”

IBM is looking forward to increasing further business opportunities between Public and Private blockchains by being open to approach by retail companies, beverage manufacturers and energy providers looking to tokenize various aspects of their business offerings.

In a statement, IBM said:

“We’re going to see a lot more convergence between those two ends of the spectrum. The bitcoin and cryptocurrency space that has been hands-off for enterprises and the private, country club blockchain space that is on the other side.”

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