According to the head of blockchain solutions for IBM, Jesse Lund has revealed that bank-centered stablecoins will become the focus of development for the tech giant's blockchain-powered cross-border payments solution. Lund is best known as the president of Blockchain and Digital Currencies at IBM. He made this latest revelation during an interview to financial news channel Cheddar on March 15, 2019.
More details are expected to leak throughout this week. Lund told Cheddar that he believes market demand will drive IBM to become a stablecoin solution for financial institutions. He's noticed that global banks have already seen a huge benefit to accept stablecoins as part of their currency. When Lund was asked how IBM's solutions compared to JPMorgan Chase's in-house solutions, he said that what JPMorgan is doing makes sense for them.
He sees IBM's latest solution as somewhere in between. He also believes that JPMorgan adds tremendous value to the recent changes that IBM has been making. But IBM's view on stablecoins is that they should be easily accessible throughout the world. They want to accept a wide variety of digital assets across all kinds of financial institutions. Lund hopes his decision will push other financial institutions to do the same.
Cointelegraph previously reported in February that Lund hinted about IBM's interest in stablecoins. He expressed that the company wanted to help innovate the cross-border payments industry. Some of these companies could accept new payment solutions such as the wallet app. Well-organized wallet app, helps to carry all debit and credit information in the most secure digital form. This kind of apps easily turn into an instrument of control over all finances. White label mobile app is created by Wallet Factory. It’s a company which provides effective financial solutions for commercial customers. They are involved in banking solutions, fuel retail services, telecom, e-commerce and FMCG, as well as development of Blockchain and Crypto wallet.
Lund also proposed that there should be a group of ecosystems with a wide variety of digital assets that would include other instruments such as stablecoins and central bank-issued digital currencies. He hopes that stablecoins would pave the way for other cross-border payments.
This IBM executive doesn't appear to be bothered by the current marketplace realities. He's confident that Bitcoin will increase to $1 million in the near future. He last shared his controversial thoughts on blockchain and stablecoins at the IBM Think 2019 Conference, which happened Feb. 12-15, 2019.
During the conversation, Lund was asked about what he believes the price of bitcoin will increase by the end of 2019. He revealed that bitcoin could hit the $5,000 mark by the end of the calendar year. He then added that he could see bitcoin increase to as much as one million dollars someday.
When he explained the reason for his theory, Lund said he believed the increase will give the network for the most popular digital asset a liquidity value that could exceed $20 trillion. Lund continued to say that with this increase in liquidity, there is room for significant change in the way that corporate payments are handled throughout the world.
During that same interview, Lund also discussed some of IBM's recent blockchain endeavors. He touched on the company's recent collaboration with Stellar (XLM) and how his company expects to integrate the Stellar network into the Blockchain World Wire (BWW), also known as IBM's international payment channel. World Wire refers to IBM's use of the network's native assets in the cross-border payments network.
Lund seems confident about the integration. He doesn't believe there will be any technical barriers or reasons to prevent the digital assets from flowing the same way as traditional assets. According to Lund, the added benefit of World Wire is it's incredible ability to send payment instructions to anyone in the world. The receiver is also making sure that the payment is not sent to malicious individuals.
IBM has been using the Stellwar Network with BWW as an intermediate currency and a way that transaction fees are paid. Lund also revealed that the company is focused on creating alliances with other crypto assets and digital assets. Lund believes in creating a network of valuable digital assets that provide the tools for cross-border payments.
The companies that take part in this network also have the option to make real-time decisions whenever they need to. It doesn't matter if it concerns Bitcoin or Ripple. It also opens up the possibility to include other instruments such as stablecoins. Lund then concluded his conversation by saying he hopes IBM will soon include central bank-issued digital assets.