IBM Open to Working with Facebook on Blockchain Technology

Technology giant IBM is willing to work with Facebook on developing blockchain technology for its Libra stablecoin, CNBC reported on 23 September.

During an interview with the news agency, IBM’s blockchain general manager, Jason Kelley, stated that the company is looking to foster “collaboration” in the blockchain space. Even though he did not say if IBM is interested in joining the Libra Association, he mentioned that Facebook’s entry into the blockchain industry will help bring more legitimacy to its underlying technology. He also said:

“Blockchain is a team sport. Our clients are ready to work with (Facebook) and we’re ready to work with all of them to bring it together.”

IBM could be of great help to Facebook, with their extensive experience with blockchain technology. The company has developed its own blockchain, Stellar, which it claims will enable greater transparency around banking and supply chain management. During the interview, Kelley distanced himself from cryptocurrencies and focused on tokenization, which lets any asset be digitized. He said:

“We talk about Libra and people say it’s just another crypto. Set crypto aside and talk about tokenization, because that’s what we’re talking about.”

As already reported, Facebook’s Libra stablecoin will be backed by a basket of fiat currencies, but now it seems that the percentage breakdown of these currencies has been revealed. According to a publication from the German newspaper Der Spiegel, 50 percent of the basked will consist of USD, while the rest will be 18 percent Euro, 14 percent Japanese Yen, 11 percent British Pound, and 7 percent Singapore Dollar. The Chinese Yuan, the world’s second biggest economy, was left out most likely because of the tense trade relationship between China and the U.S.