JPMorgan launches its own cryptocurrency; the first for a major U.S. bank

Oscar PerryФев 15, 2019

In trials scheduled to begin in a few months, it plans to handle a small fraction of those payments using a homegrown blockchain.

The biggest bank in the U.S, JP Morgan has had a love-hate relationship with the crypto and blockchain industry.

This week, Maria Bartiromo recaps her interview with JP Morgan Chase Chairman and CEO Jamie Dimon, discussing market volatility, impact of tax cuts, U.S-China trade fight, and a possible slowdown in the US economy.

This news might come as a surprise to those who are familiar with JP Morgan's previous views on Bitcoin. Last year, J.P. Morgan and two other lenders banned the purchase of bitcoins by credit card customers. 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. It even developed its own blockchain network named Quorum.

There are three early applications for the JPM Coin, according to Farooq.

While Jamie Dimon constantly avoiding the growth of Bitcoin, the managers and engineers at NewYork based bank have always been optimistic towards the underlying technology and digital currency at large.

He also claims that over time, JPM Coin will be extended to other major currencies.

Читайте также: Kate Middleton Looks Regal in Gorgeous Pink Gucci Gown

"As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators", said JPMorgan's Head of digital treasury services and blockchain Umar Farooq. "The applications are frankly quite endless; anything, where you have a distributed ledger which involves corporations or institutions, can use this".

"JPM Coin is now designed for business-to-business money movement flows, and because we are still in a testing phase, we don't have plans to make this available to individuals at this stage". It is a digital coin representing United States Dollars held in designated accounts at JPMorgan Chase N.A. In short, a JPM Coin always has a value equivalent to one U.S. dollar. New types of digital coins (some better than others) pop up regularly, and while nobody can predict the future, it doesn't look like many of them will be going anywhere anytime soon.

How does JPM Coin work? The first of these is worldwide payments for sizable corporate clients. Previously, these transactions have relied on platforms such as SWIFT which can take up to five days.

Replacement for dollars held in treasuries - The token could replace dollars held by subsidiaries of huge corporations across the world.

Mr Farroq said: "Money sloshes back and forth all over the world in a large enterprise". Farooq says: "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."Pretty much every big corporation is our client, and most of the major banks in the world are, too", he concluded".

Secondly, JP Morgan's token may also be used for securities transactions.

The leap also seemed to soften the bank's stance on cryptos.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2019 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related Articles:



« Previous article
Next article »


Popular Pages

AASU activists Burn PM Modi’s Effigy in Guwahati
The posters of "No more Modi", "Modi is a Mistake" and "Modi never again" were spotted in different areas of the state . Modi said that the National Democratic Alliance's work culture was different from that of the previous governments.

Another Democrat Just Made Fun of Ocasio-Cortez's Green Deal
House Speaker Nancy Pelosi has tapped eight Democrats to serve on a special committee to address climate change. Ocasio-Cortez is not on the panel.

USA relief supplies stuck at Venezuelan border
Volunteers hustled about as they filled up white sacks with the food and other items from boxes marked with the words USAID. He also hit out at European and Latin American ministers who called for a new presidential ballot.

Ireland team named for Scotland clash
Greig Laidlaw took a swipe at referee Romain Poite after Scotland's Six Nations defeat to Ireland at Murrayfield on Saturday. The Clermont Auvergne scrum-half said: "I think it's good for us being at home when the weather is like this".

British actor Albert Finney, star of ‘Tom Jones,’ dies at 82
Finney's family said Friday that he " passed away peacefully after a short illness with those closest to him by his side ". British actor Albert Finney puffs a big cigar as he sits in the back seat of a vintage cap on the set of " Annie " in NY .

Greek parliament ratifies NATO accord with Republic of North Macedonia
Mr Tsipras also refuted calls for early elections. "We remain committed to our declared position". Seven out of ten Greeks oppose the deal, according to all recent opinion surveys.

National Basketball Association trade deadline: Raptors acquire Marc Gasol from Grizzlies
It's not a surprise that Toronto made a move because Philly added Tobias Harris and Milwaukee added Nikola Mirotic . Toronto played short-handed due to the trades Thursday night but still pulled out a 119-101 win over the Hawks.

Kamala Harris Says Marijuana 'Brings People Joy'
There's apparently a meme out there that states that Kamala Harris as a prosecutor "set a state record" for prosecuting black men. And look I joke about it, half joking - half my family's from Jamaica, are you kidding me", Harris replies, laughing.

Mbappe can't cover for Neymar and Cavani, admits Tuchel
Fellaini is now an interested observer of the goings-on at Old Trafford , with United enjoying a welcome upturn in form under Solskjaer.

Oil prices lower as inventory build only modest
In particular, he said, the market is anxious about whether demand is sufficient to absorb growing crude production from the U.S. The fund would receive income accrued by state-run oil firm PDVSA's U.S. unit Citgo Petroleum Corp since last month, when U.S.