The United States largest bank JPMorgan Chase, is launching its own cryptocurrency.
The United States largest investment banking company JPMorgan Chase, is launching its own cryptocurrency. With this news, JPMorgan becomes the first US bank which will be backed by cryptocurrency to transform payments business.
The name of cryptocurrency is JPM Coin. The key point to consider is, the cryptocurrency has a fixed value against US dollar. Which means it will not be traded freely like bitcoin, Ethereum and other cryptocurrencies. It will be redeemable against US dollar like one JPM coin value is equivalent to one USD.
The bank believes that, its cryptocurrency can benefit lower its client transaction costs and risks by transferring money instantly. JPMorgan transfers trillions of dollars across the globe worldwide every day on behalf of customers.
They have designed JPM Coin to be used initially by their major institutional customers and they expect it to use it for other categories of the customer later in 2019. JPMorgan claimed that it is the first bank American Bank to create and successfully test this kind of digital coin. This news about JPM Coin was first reported by the CNBC.
Cryptocurrencies works on blockchain technology and they are not issued by governments. All the transactions records transparently in blockchain open ledger and quickly than other traditional banking transactions.
If you remember the year 2017, JPMorgan CEO Jamie Dimon said words like "fraud" "stupid" and "far too dangerous" for the Bitcoin and to people who are trading it.He also said that he support Blockchain technology for tracking payments but he will fire his employee if anyone will be found trading Bitcoin at the bank. but soon he has taken back his words saying that he regretted his comments, adding that he believes cryptocurrencies are real and had to be examined individually.
JPMorgan issued a clarification on its stand about cryptocurrencies :
"We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated," said the bank "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."
This step by JPMorgan shows the requirement of the cryptocurrency in future. Many more banks may come with the cryptocurrency coins..
Disclaimer & Suggestion : Please always to your due diligence before investing in any cryptocurrency or project. This is not a financial advice.