IBM has joined hands with a fintech startup known as Stronghold. The partnership will enable the tech firm to involve itself with a digital currency based on the US Dollar.
IBM is focusing on what it is terming as a stablecoin. In a bid to counter volatility, the stablecoin will be paired with a government-backed currency that is already in operation. An official press release confirmed that the U.S Dollar backed digital currency is known as Stronghold USD.
An asset manager called Prime Trust will be responsible for holding the reserve. The asset manager mainly concentrates on digital technology as well as the blockchain technology.
Test Virtual Currency
The tech giant is going to test the virtual currency so as to find ways in which banks and financial institutions can benefit from it.
Although Stronghold USD promises to be shielded from volatility, there have been concerns raised over stablecoins. Tether which is a stablecoin has been accused of being behind the manipulation of Bitcoin?s price during its price rally last year.
Even though digital technology is being adopted at a fast-rising rate, security surrounding it is still questionable. Economies are experiencing massive digital transformations with data being at the center. Have trust issues are also rising.
IBM Partners With Columbia University
In a bid to solve the challenges facing data transparency, IBM has partnered with Columbia University. The partnership will be responsible for developing a Center for Blockchain and Data Transparency.
The said Center will focus on education, research and innovation in the blockchain technology sector and data encryption. Additionally, the center will offer an innovation accelerator which will nurture business ideas from the students, faculty and startup community members.
The Center will bring together a team of professionals from the academic, business, government and scientific communities. The team will look into the issues surrounding the trust, policy, sharing, and digital data usage when it comes to blockchain usage.
The partnership will enable research in areas such as secure hardware, homomorphic encryption, fraud reduction, and multi-party computation. This will, in turn, encourage the development of new business models and services. It will also aid in developing secure data sharing policies that will ensure a tamper-proof method of preserving privacy.