JPM Coin - the first banking cryptocurrency

Recently, we hear about more and more frequent "Personalization" cryptocurrency. Amazon or Venezuela are not the only examples whose dream was to have their own digital assets. One of the largest banks in the world also joined this group. JP Morgan, the head of the bank, said last year "I do not care bitcoin (...) It will not end well. Someone will die. " On the other hand, in 2017, the famous words came out of his mouth: "Bitcoin is a scam". Where does the change in approach to the topic of cryptocurrencies result from?

Technology matters

One of the main arguments of the bank was to use the speed of blockchain technology mainly for business payments. Settlements between partners are to be made immediately. The bank assumes that this method of settlement is to be adapted in the next few months. In general, JPM Coin should strongly depend on the dollar. The new issuer intends to keep their closed register entering the market of digital tokens. This means that the cryptocurrency will be controlled by one operator, and access to it will only be granted to institutions authorized to do so. Technological thought (chain of blocks) was modeled on Ethereum.

How transactions will be settled

The assumption is very simple. Each JMP Coin has to correspond to one dollar. Immediately after depositing cash, customers are to receive a banking cryptocurrency. After using tokens (making a transaction), the bank will liquidate them and pay the client the appropriate amount in dollars. The main advantage of this solution is the immediate transfer of payments. The solution is also to be used to settle transactions in securities.

Cryptocurrency not for everyone

The latest reports indicate that JPM Coin will never be admitted to trading for individual investors. It is to be only an asset created for the internal needs of the company and subject to strictly defined regulations. Large corporations will be able to use it. As a reminder, the bank currently services about 80% of Fortune 500 companies. The adaptation of quick payments according to current forecasts may only have a positive impact on the bank's performance in the near future.