The major US bank JP Morgan Chase announced that it will create a blockchain-based coin called $JPM. The coin will be used by the bank to instantly settle transactions between the clients of its wholesale payments business.
In the past, Jamie Dimon, the Chief Executing Officer of JP Morgan, talked negatively about Bitcoin, claiming it was a fraud and blocked Bitcoin purchases through credit card for the bank’s customers. Ironically though, he has now come to the point to create his own “stablecoin” using blockchain technology. The difference is that this stablecoin won’t be available for the masses and it will only be used for internal transactions. The bank moves $6 trillion around the world every day for corporations and the blockchain technology will provide faster transfer of money and 24/7 cross-border payments.
The JPM coin will be used by big institutional clients of J.P. Morgan that have undergone regulatory checks, like corporations and banks, and retail investors probably won’t get to own any JPM.
As stated by CoinCenter‘s executive director, Jerry Brito, the $JPM coin created by JP Morgan is not a cryptocurrency but only a blockchain-based method of transactions for banks. That is because JPM doesn’t stand by the ethical and operational standards of cryptocurrencies. As he stated: “A cryptocurrency is one that is open and permissionless, if you want to download it, you don’t need permission; you just need some software.”
It will be interesting to see how this evolves, as the world starts realizing blockchain technology’s advantages when compared to the old economic systems. It’s possible that soon all money will become digital, and the dollar will resurrect renewed like a phoenix from its ashes.