JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

[cryptochris1]

A banking giant with almost $6trillion worldwide every day has announced the launch of their own cryptocurrency, JPM Coin. Accordingly, JPMorgan’s new coin will go live in the next few months.

World’s First Cryptocurrency By Bank

Announced on Feb 14, 2019, JPM Coin’s headline surprised many crypto enthusiasts – since, in last few years, the name of JPMorgan’s Jamie Dimon appears on headlines while criticizing the largest cryptocurrency, bitcoin. In fact, CEO Jamie Dimon called Bitcoin a ‘fraud’. However, a few Engineers at  the Bank have rolled a new coin on the Bank’s name which intends to transfer the minimum initial paymentl.

While Jamie Dimon constantly espouses the growth of Bitcoin, the managers and engineers at the NewYork based bank have always been optimistic towards the underlying technology and digital currency at large. The new coin by the Bank’s engineers is an initiative to execute instant payment settlement between banks using cryptocurrency mechanism. Talking about the payment transfer using blockchain, Umar Farooq, the banks’ blockchain projects says that ‘it would be a payment leg for that transaction’.

Bashed Bitcoin But Not Regulated Crypto

It’s quite interesting to note that Jamie and a few of the bank’s engineers ‘bashed bitcoin’ but they all of a sudden support digital currency that is ‘regulated’. Consequently, they believe such regulated cryptocurrency will hold much promise. At this point of time, JPM Coin is more likely going to be a stable coin. The report revealed that the coin will be backed by 1 U.S.dollar wherein the value wouldn’t fluctuate.

The idea is that, once the dollar is deposited in banks, clients will issue the coins and such coins will be used either as payment or secure a purchase on the blockchain. As such, once the clients used it, the bank would destroy the coins and return ‘commensurate number of dollars’ to clients.

Per Farooq’s statement, JPM coin will be on board for three key reasons. First is for international payments for large corporate clients, second is for securities transactions and lastly for huge corporations using bank’s treasury services business.

Addressing the JPM coin for treasury service firms which replace their dollars in subsidiaries worldwide, Farooq said that;
“Money sloshes back and forth all over the world in a large enterprise,” he said. “Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit? That way, they can consolidate their money and probably get better rates for it.”

-- This story jumped out at me, I had to share it with you all. After all the trash that Jamie Dimon has talked about bitcoin, to hear that they created their own crypto struck me as funny. I'd love to hear your opinions on this one, thanks from Cryptochris1--

source: www.coingape.com