J.P. Morgan hates Bitcoin, J.P. Morgan loves Bitcoin…J.P. Morgan launches its very own cryptocurrency – JPM Coin. Hold the press!
News broke yesterday that the U.S.-based lender, J.P. Morgan Chase has launched their very own cryptocurrency called ‘JPM Coin.’ Today we take a closer look at the new coin to establish if it is a friend or foe to the crypto world.
It is no secret that J.P. Morgan and Bitcoin and alt coins, in general, got off to a rocky start. Jamie Dimon, J.P. Morgan CEO has been very critical of cryptos and has even called Bitcoin a “fraud”. On the other hand, the company’s bank chief and several managers have been encouraging blockchain and regulated currencies usage.
The announcement of the new coin was unexpected. Especially when taking into account that the company and two other lenders banned credit card customers from buying Bitcoins during 2018.
What is JPM Coin?
The JPM Coin is allegedly the first cryptocurrency that is backed by a major U.S. bank. It was created by engineers at the bank and will be used to settle payments between clients at its wholesale payments business, instantly. This will pave the way for cross-border payments and corporate debt issuance thanks to the help of blockchain technology.
A trail is supposed to start in a couple of months. Initially, only a small amount of payments will be transmitted with the crypto. However, it is still very exciting as the trail is the first real-world use of crypto that is backed by a major U.S. bank.
Speaking to the media, Umar Farooq, head of the company’s blockchain projects, said applications are endless. Farooq was quoted saying that anything that requires a distributed ledger at a corporation or institute, can make use of the technology.
Will JPM Coin be listed on exchanges for trading purposes?
Unfortunately not. JPM Coin will only be available to big institutional clients of the company’s treasury service such as banks, broker-dealers and corporations. All of these will have to undergo regulatory checks to make use of the platform.
JPM Coin will be used to hold dollars in subsidiaries around the globe. It is said that each JPM Coin will be worth $1 and should not fluctuate. Comes down to a stable coin. Clients will receive JPM Coins when they deposit dollars at the bank. They can then use the tokens to make payments etc.
JPM Coin – Friend or Foe?
When looking at the numbers, J.P. Morgan Chase banks more than 80% of companies featured in the Fortune 500. This can be good for the crypto industry as it will go a long way towards mass adoption of blockchain technology and cryptocurrencies. What is your opinion on the matter?