Cryptocurrency values have rocketed on the back of an announcement that computer giant IBM has bought into the cyber-money revolution.
In its wake, other crypto-currencies were trading at healthy levels, with at $502.38, at $0.5127 and at more than $91.38. In a single day, the crypto-currency market gained more than $20 billion reaching nearly $300 billion.
New currency to be backed by dollar reserves
But much of IBM’s cryptocurrency plan remains unclear. The project involves IBM going into partnership with fintech start-up Stronghold to create a new cryptocurrency that will be pegged to the .
Such a relationship with the American currency would mark a major departure from the practice of Bitcoin and other forms of cyber money. These find their own value on the open market and, while this value is expressed in dollars, there is no formal tie with the US denomination.
This technology has, until now, been the sole guarantor of cryptocurrency value because of its decentralised nature, which means its records are held openly on computers around the world. In the case of Bitcoin, only a fixed number of coins can ever be created, and the limit can never be increased.