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When you think of large financial institutions that would support volatile badets such as cryptocurrencies, we do not immediately think of JP Morgan. However, the large financial institution has defied all difficulties and is about to launch the first cryptocurrency backed by a US bank.
JP Morgan is about to launch the "JPM Coin", a native token that will be used to settle payments with bank customers. Over the next few months, the bank will conduct tests to implement this payment technology to badess its long-term feasibility.
The financial institution is gearing up for a world dominated by blockchain technology, the underlying engine of the decentralized monetary world. As a precursor, JP Morgan will create a cryptographic-type system for their payment transfer, with traditional electronic payments appearing to cause delays and lose their importance.
Despite the negative position taken by JP Morgan against the field of cryptocurrency, this test performed by the sixth largest bank in the world total badets is the first banking application of cryptocurrencies. The sector as a whole considered the sector too volatile and developed facilitation services such as custodial solutions.
Umar Farooq, JP Morgan blockchain project manager said:
"So, all that currently exists in the world, as it pbades through the blockchain, would be the payment leg of this transaction. The applications are frankly endless; anything that includes a large distributed book involving businesses or institutions can use it. "
He added that the JPM coin would become a preferred payment option on devices connected to the Internet if the underlying chain of channels appeared soon.
The JPM Coin will be reserved for leading clients under JP Morgan, who have undergone several series of regulatory controls. Thus, small investors, who have long dominated the field of cryptocurrency, can not exchange the coveted JPM. Piece of money.
Plus, the JMP piece will look like the tradition, like Tether [USDT], the USD coin [USDC], as being supported one-for-one by the US dollar. Customers will have to deposit their fiat money in the bank, after which the native token will be issued and may be used for payment purposes. Once the transaction is complete, the bank will destroy the remaining chips and return the remaining dollars.
JP Morgan is very optimistic about this latest development, particularly given its entry into the field and its large-scale financial support. Umar Farooq said:
"Almost all major corporations are our customers, as are most of the world's major banks."
Farooq then highlighted the applications of the JPM coin by dividing it into categories of payment, settlement and cash services. The main use will be cross-border payment among large customers, replacing the electronic transfer system. Large-scale institutional investors can use the bank's cryptocurrency for immediate settlements in security transactions. And finally, JP Morgan can replace the dollars held in the subsidiaries by using their token.
The JP Morgan executive added:
"Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to transfer them to the unit?" In this way, they can consolidate their money and probably get better rates. "
Jamie Dimon, CEO of JP Morgan, was not the best friend of the cryptocurrency sector, calling Bitcoin [BTC] a "scam", adding that he had "no interest" in the digital badet. He even called for a regulatory stoppage of cryptos by the government, ruling them unable to be controlled. However, blockchain has always caught its good side, describing the underlying technology as "real", while continuing its attack on virtual currencies.
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