The creation of JPM Coin by JP Morgan
JP Morgan, which is the vast investment bank led by Jamie Dimon, just became the primary central US financial institution to launch its own crypto.
The news has been reported recently, saying that the new crypto token, which is dubbed ‘JPM Coin,’ is going to be utilized by the bank to settle payments between clients instantly. According to several estimates, JP Morgan moves more than just $6 trillion per day.
Additionally to the wholesale settlement, the blockchain chief of JP Morgan, named Umar Farooq, said that the JPM Coin crypto could actually be utilized to create digital securities. It has previously been reported that JP Morgan had filed a patent for a blockchain-based system which is going to allow the bank to issue virtual depository receipts, which is quite similar to security tokens.
Farooq has also revealed that it may serve as some kind of stablecoin for the clients who hold US dollars in international jurisdictions. According to the report, each JPM Coin has a face value of about $1.00 and may additionally be swapped for physical greenbacks.
In one interview, he said that money sloshes back and forth worldwide in large enterprises. Is there actually a way to make sure that a subsidiary may represent cash on the balance sheet without having to wire it to the unit? In that way, they may isolate their money and even get better rates for it.
Once corporate adoption takes off, Farooq said that the bank may even try to expand its crypto into device-based payments.
The history of Bitcoin bashing of Jamie Dimon
While it is not a secret that JP Morgan devoted some substantial research into the blockchain development, the CEO Jamie Dimon has usually sought to distinct blockchain technology and crypto, the latter of which he frequently bashed.
He took particular aim at public crypto such as Bitcoin, which he at different times lambasted as a fraud suitable just for stupid investors. He said that he could care less what Bitcoin trades for, how it actually trades and what the reason for its trading is or who trades it.
He said that if people are stupid enough to buy it, they are going to pay the price for it one day. It may trade at $100,000; however, it will eventually crash to zero. Individual governments will crush it, ended Jamie in his memorable interview.
What does JP Morgan mean by “cryptocurrency?”
While JP Morgan laid out what it hoped to do with JPM Coin, it was less transparent about the technical details of the token. That then raises a question – what does the bank mean by “cryptocurrency?”
It is actually clear that JPM Coin is going to exist on a blockchain; but, the bank has still not revealed what that blockchain is going to look like, or what level of control JP Morgan is going to retain over its ledger.
The given extensive research of JP Morgan into enterprise blockchain regulatory concerns, as well as the fact that the bank initially has some plans to utilize the token just as part of the internal operations, it looks likely that the crypto is going to exist on a permitted network. Anyway, don’t expect to see JPM Coin listed on the local crypto exchange.
Nonetheless, with a financial institution which is entrenched as JP Morgan taking the plunge into actual blockchain payments, maybe skeptics are going to be more willing to give the decentralized cousins of JPM Coin a closer look.