The proposed digital payment platform will be decentralised.
IBM is looking to use bitcoin technology to create a digital payment platform which can handle major currencies.
The technology known as ‘blockchain’ is planned to be used for a digital cash and payment system which will facilitate transfer of cash without bank clearance or any third party intervention, Reuters reported citing people familiar to the development.
Digital transactions made through the system would be kept in an open ledger of a specific country’s currency.
Similar to the functioning of bitcoin network, the ledger will can be accessed by all users instead of storing the transaction information in a separate server which is controlled by bank or any other companies.
The source told the news agency, "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.
"It’s sort of a bitcoin but without the bitcoin."
IBM is reportedly started an informal discussions with several central banks including the US Federal Reserve for this blokchain based cash transfer system.
If the company gets approval, it will start building a secure and scalable system for the proposed blockchain system.
The proposed digital payment platform will be a decentralised one and only be controlled by central banks.