It was only a matter of time. The ultra-advanced, superior technology of the digital currency Bitcoin and it's Blockchain public ledger system are in danger of being co-opted. The tacit compliments of the financial establishment for the Bitcoin Blockchain, not Bitcoin the currency, over the past year are starting to be followed with action. IBM, in conjunction with your centralized banking elite, have discussed plans to perpetuate the future of national currencies, like the U.S. Dollar, through their own digital fiat-currency system.
A Centralized Digital Fiat Currency made by IBM
Think of it as a knock-off of the Bitcoin Blockchain, only to service the central banking system and those who have become beholden to it. Bitcoin technology creates a better mouse trap, and the central bankers discuss with IBM "How do we make our funny money currency work like that?"
"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," a source familiar with the project said. "It's sort of a bitcoin but without the bitcoin."
In other words, take the sound money supply-and-demand principles of Bitcoin out and replace them with a digital representation of centralized fiat currency instead, that a private corporation can still manipulate. How awesome is that?
Keep in mind that only preliminary discussions have been made, and nothing has been finalized. These discussions have taken place with privately-owned Federal Reserve, and other countries may also be potential suitors for this new digitized fiat currency system. The Bank of England may also be very interested in this endeavor, as they lauded the Bitcoin Blockchain in a September 2014 report. The BOE described the blockchain's open ledger as a "significant innovation" that could transform the financial system.
"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."
The new system would have direct oversight by the central bank it represents, unlike Bitcoin's decentralized system. Instead of having ledgers maintained by banks that act as a record of an individual's transactions, this kind of open ledger would be viewable by everyone using the system. It would use an agreed-upon process for entering transactions into the system.
"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," the source said.
I predict that this will be fast-tracked, but the U.S. probably won't be the first to implement it, since it is the Global Reserve Currency. A smaller nation of less significance would be a beta-test at some point this year, and the U.S. will join the system after this year once the system proves workable and scalable. And I'm sure the marketing will sell it as a real state-of-the-art innovation (copied from Bitcoin's true innovation) that is so cool, you've got to start using a "BitDollar"!
Can IBM effectively knock-off Bitcoin's Blockchain, and keep it as secure? Do you trust the private Federal Reserve to continue to manage a nation's finances, especially after their last 100 years of track record?In modern Western society, over 95% of fiat currency is digital instead of paper, so the only question going forward is, do you want to use their fiat centralized digital money or your decentralized Bitcoins?
At least now you do have a choice. This will prove that Bitcoin is on the most righteous path. The establishment may have to follow its lead just to stay relevant. Nation-states, economically, can't afford to be Blockbuster Video to Bitcoin's NetFlix.
Images from Shutterstock.
If IBM made your digital fiat currency, managed by the Federal Reserve or a central bank, would you use it? Share above and comment below.