JPMorgan creates JPM Coin

JPMorgan creates JPM Coin

Talking about the payment transfer using blockchain, Umar Farooq, the banks" blockchain projects says that "it would be payment leg for that transaction'. That's the database technology made famous by its first application, bitcoin.

As for the third application, large corporations that hold U.S. dollars in JP Morgan's treasury services will be able to replace the dollars held in subsidiaries for JPM Coins.

While Roubini is something of a pariah in the cryptocurrency world, he's not alone in his criticism there are a few more personalities in the industry who think the same.

While US-based Coinbase has already announced its partnership with Israel-based payments processing firm Simplex to enable its users to buy cryptocurrencies using their credit card, one India-based crypto company founder told Inc42 that they are also working towards a banking solution which will incorporate similar solutions.

There's an even bigger group that believes that JP Morgan has missed the whole point of cryptocurrencies. And Goldman Sachs reportedly shelved plans to create a bitcoin trading desk after exploring the idea.

Dubbed JPM Coin, the cryptocurrency has a fixed value redeemable for one US dolllar.

Chief Executive Officer Jamie Dimon once criticized the former high-flying bitcoin, calling it a "fraud" in 2017. When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of USA dollars, reducing the typical settlement time.

"When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalents amount of US dollars, reducing the typical settlement time", the company added.

With the introduction of JPM Coin, there are many possible outcomes pertaining to the effect on crypto as payment. Moreover, the bank "will actively engage our regulators to explain its design and solicit their feedback and any necessary approvals".

Just last month, equity analysts at JPMorgan said blockchain could reduce transaction settlement time to minutes, lower transaction costs and provide parties with more clarity on payment cycles.

The final use will be for securities transactions. In April, J.P. Morgan tested a debt issuance on the blockchain, creating a virtual simulation of a $150 million certificate of deposit for a Canadian bank. But because JPM already "banks" 80 percent of the Fortune 500, veritably all companies with large and frequent money transfer requirements will eventually be able to tap into J.P. Morgan's treasury services, either directly or via a U.S. payments system on-ramp.

The final use for the cryptocurrency is for multinational conglomerates who use the bank's treasury services business to replace dollars they hold in subsidiaries elsewhere. JP Morgan caters to some of the biggest companies globally, handling such operations as salary settlements and supplier payments. "2 years later, and bank coins still aren't the answer".

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