Are JP Morgan to Introduce their own Cryptocurrency?
By Mark Lemon – Cryptocurrency Professional
JP Morgan are reportedly developing their own cryptocurrency after Chief Executive Officer (CEO) Jamie Dimon slated the industry back in 2017. Though the mechanics and function will be like a cryptocurrency, the coin will not be powered by a public blockchain but instead have permissioned users.
As opposed to Bitcoin which started from the ground and is working its way up, the JPM Coin is starting from the top. Regular users will not be able to sell crypto and exchange for this coin as only select institution will have access. Financial institutions will gain access to use the coin for transactions between these entities to save on expenses and for increased efficiency. Customers using the blockchain will have to comply with all Anti-Money Laundering (AML) and Know-Your-Customer (KYC) rules imposed for the platform.
JP Morgan say the coin will be introduced for international payments to try and alleviate deficiencies in the system. International payments can incur delays of greater than 24hrs and by using the JPM coin, clients will be able to benefit from instant settlement. JP Morgan reportedly transacts more than $5 trillion in wholesale payments each day. If they were to use the JPM coin to exchange Bitcoin or another currency for international payments, it could have a great impact.
Securities transactions is another arena which clients could benefit. They could receive instant settlement in the form of the JPM Coin able to cash out crypto for cash at a 1-1 ratio due to the stable mechanics of the coin. This cryptocurrency like many other Stablecoins, will hold a reserve dollar value equal to the coins in circulation and minted.
JP Morgan has not ruled out plans to bring JPM Coin to an individual level. We could potentially see the coins become available for personal trading in the future. Don’t forget to head to our platform to sell Bitcoin UK or to convert your crypto to cash.