After breaking below consolidation and moving slightly lower towards the end of last week, bitcoin trading got a boost from reports that the Fed and IBM might work together to create a new version of the cryptocurrency.
Word through the street is that these two institutions are working on a national currency based on the bitcoin, which has increased in popularity and mainstream acceptance over the past months. This is certainly an interesting development, as a well-established national central bank and a top technological company could work hand-in-hand to spur more progress in the bitcoin industry.
Analysts speculate that the Fed and IBM would seek to incorporate more regulation and security in their own version of bitcoin trading, which might be less appealing for those who use it for anonymous transactions. However, the ease and convenience of its usage and the cost-effectiveness for merchants and consumers could still keep bitcoin prices supported.
Not much details have been disclosed but cryptocurrency industry analysts speculate that this could make use of the blockchain, which is sort of a digital ledger of the transactions for bitcoin units. Preliminary discussions are already underway but no specifics have been announced yet.
Other major central banks, such as the Bank of England, have also shown support and interest in using the bitcoin. In September last year, the BOE mentioned the bitcoin in its report, citing the blockchain as a significant innovation in the financial system.
Instead of having a decentralized system for the bitcoin trading though, oversight from the Fed and IBM could lead to a more secure industry. Proposals for having an open ledger that is transparent for all market participants have been raised, although this could wind up discouraging those who transact with the bitcoin trading mostly for its anonymity.