Link: IBM looking at adopting bitcoin technology for major currencies
If IBM succeeds in creating a product for the Federal Reserve and other banks, it would introduce stable-value blockchain technology to the entire world. IBM is certainly a heavyweight in tech circles. It will be a project for us to keep an eye on.
I believe this will be the first of many projects that legitimizes Jordan Lee’s white paper prediction:
If [Nu is] successful it will induce the Federal Reserve to be more efficient and compete better, which will benefit nearly everyone and make our world much more peaceful.
However, it will remain to be seen whether a centralized, non-anonymous blockchain currency is preferred over the decentralized design of Nu. As long as NuBits maintains its value stability, it very well could remain the superior option in the long-term.
The tech being developped by ibm would ve used by the central banks which basically would control the money supply. If the shareholders are only a handful of people ( i highly doubt they would open the capital to the public), as it is the case right now (on the surface and behind the scene), that would make the system centralized…
“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,” the source said. “It’s sort of a bitcoin but without the bitcoin.”
–> usd pegged crypto dollar
Unlike bitcoin, where the network is decentralized and there is no overseer, the proposed digital currency system would be controlled by central banks, the source said.
—> controlled and centralized
“> 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 process of sitting the dollars on the blockchain is gradual
The blockchain is just a NEW money issue/ transaction technology which replaces the paper money print , anti-counterfeiting tech or swift protocol among banks. Nothing more. Bitcoin/ PPC/XPM follow a very old monetary theory several hundreds years agao, Gold Standard.
The credit of central bank or government damaged because they are monopolists, and abuse their power to inflate money, they use the "incentive economics, full employment " as an excuse to get benifit such as election campaign.
The ever increasing FIAT supply temporarily keeps economics booming and hurt the economics body in a long run, sooner or later the crisis will come and natually the old chairman/president has already retired. (alan greenspan )
People don’t trust the FIAT value in a long run, people will never believe central banks keep constant total quantity of blockchain based new FIAT either. Internet Cryptos will win because of central banks bad reputation not blockchain tech itself unless central banks lose their monopolist positions and compete with internet cryptos. In this case, central banks will be cautious about the value/buy power degrade issue.
So the key is monopolism vs free competition, as a sound competitor, you either
a) centralized + real ID revealed (ripple, BTS and coming IBM/FED cryptos, this is the way FA Hayek talks about private currency competition)
b) decentralized and anonymous(bitcoin)
Both feasible! I don’t think (b) has special tech advantage over (a) in a free competition environment.
But for Nu now, we are poorly decentralized because of only 4 LPCs.
c) centralized + anonymous, that’s bad. people just distrust you.
d) real ID revealed + decentralized , this is good but not necessary.
We all knew this was coming.
How do we raise the number of 4LPC to thousands or millions?
Pledge NSR and get NBT to become LPC, and reward is extra NSR just like you confirm transaction(minting) and get 2% extra NSR per year.
What’s your suggestion?
Increase the nushareholders number to millions and give them incentives to become LPCs - I think we have good ideas with the pools
@pennybreaker @cryptog @tomjoad @Sabreiib @Sentinelrv
Edit: inserted members