JPMorgan Called Bitcoin a Scam, Now Releases Its Own JPM Coin

The largest bank in the United States and sixth largest bank in the world, JP Morgan Chase (JPM) will become the first US bank to launch their own cryptocurrency, according to reports by CNBC on February 14.

The crypto asset will be called “JPM Coin” and will purportedly be used to increase settlement efficiency within 3 of the banking giant’s own operations with plans to expand to more operations through time.

Shining light on this new development was Umar Farooq, project lead for JPM’s blockchain focus. Speaking to CNBC, Farooq appeared vivacious about blockchain technology in the banking sector, stating:

So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction. The applications are frankly quite endless; anything, where you have a distributed ledger which involves corporations or institutions can use this.

JPM Coin Will Be Used for Real-Time Settlement

According to Farooq, there are 3 early applications for the JPM Coin.

The first is the settlement of cross-border payments by large corporations. Currently, these types of payments are generally facilitated through decades-old payment networks such as SWIFT, which often take more than a day to settle and has been prone to errors.

With JPM Coin, international payments can be settled in real-time, at any time of the day. This is a major advantage over traditional systems as institutions from different countries often have different cut-off times for transactions and operate using different systems.

The second application will be the settlement of securities transactions. Rather than have institutional investors rely on slow wire transfers for transactions, which result in a time gap between settling the transaction and being paid for it, they will be able to use the JPM Coin for instant settlements.

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

As put by Farooq:

Money sloshes back and forth all over the world in a large enterprise. 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.

Moreover, Farooq added that looking into the future, once blockchain technology catches on and becomes mainstream, the JPM Coin could be used for payments among retail consumers on internet connected devices.

What do you think about JP Morgan launching their own cryptocurrency? Is the JPM Coin a competitor with Ripple’s XRP? Let us know what you think in the comment section below.

Image Credit: https://www.flickr.com/photos/dragonflyeye/2747939461 by Thomas Belknap

6 Comments

  • murray flewelling
    Posted February 15, 2019 1:38 pm 0Likes

    JP Morgan ” Bitcoin’s a scam , a bubble and only fools invest”…….. What’s that now, why are we interested ? …..” Well this is JP Morgan , not some church , we owe it to our investors to reel in profits where ever they may be”…”If there’s money folks are makin, JP ‘s comin to do some takin” !

    • murray flewelling
      Posted February 15, 2019 1:41 pm 0Likes

      May I suggest a great look for the coin would be a picture of the death star.

  • Juuls
    Posted February 15, 2019 2:26 pm 0Likes

    Has everyone forgotten 2008 and the JP Mortgage Scam? And they walked….Stay away frim this one

  • JoeT
    Posted February 15, 2019 8:37 pm 0Likes

    What platform will they be using? Is it going to be one of the already know or will they implement their own? If so, are there going to be miners, nodes? Is it going to be as transparent as the established ones?

    I doubt so and that is the spirit of blockchain.

  • Ambriana Mckissick
    Posted February 15, 2019 8:38 pm 0Likes

    Cryptocrurrency is just that….. Crypto (the art of writing or solving codes) currency (hopefully self explanatory). What it is not is a”stock” which everyone keeps using it as. The reason cryptocrurrency is a scam is because people are viewing it for it’s ability to take them from rags to riches and that was never the intention. The goal was to form a new form of money that isn’t regulated by banks and the government this putting the power back in people’s hands to control their money. If people keep investing in the stock and not in the concept, the value of it will never be stable and you will always see those huge fluctuations, thus making it a “scam”

  • ReM
    Posted February 16, 2019 10:02 pm 0Likes

    To put the JPM Coin in perspective, eventually “the proof of the pudding is in the eating”. I would very much like to see some real life comparison on true Key Performance Indicators, like, trust, tps,costs, degree of centralisation,control, PoW vs Consensus. All of a sudden there isn’t a lot of noise about these things, especially from JPM themselves who made a lot of noise on Bitcoin/crypto in general for example. Please mind that it is because of parties like JPM blockchain and crypto exist. (Remember the latest financial crisis and all the bailouts with YOUR tax money?) This latest move is not a sign of strength, it is a clear sign of weakness and fear. Their current business model is seriously at risk. However, it eventually comes down to the essence. Are you really able to deliver? Do you trust the “old boys network” with all their strings attached? Or do you trust a radically new technology that delivers and puts the power back where it belongs namely, in the hands of us all!

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