Business: JP Morgan Goes for "Coin" with own Cryptocurrency
Many experts have argued over the staying power of cryptocurrency. Some claim that it is the future of economy, while other feel that it is a passing fad. You can list JPMorgan Chase as one of those that think cryptocurrency is the future. The United States banking giant just launched its own cryptocurrency, the JPM Coin. “JPM Coin is a digital coin designed to make instantaneous payments using blockchain technology,” explained Umar Farooq, Head of Blockchain Initiatives at JP Morgan’s Corporate and Investment Bank. “Exchanging value, such as money, between different parties over a blockchain requires a digital currency, so we created JPM Coin.”
JP Morgan plans to use the JPM Coin to increase settlement efficiency. “The applications are frankly quite endless,” explained Farooq, “anything where you have a distributed ledger which involves corporations or institutions can use this.” Initially, the JPM Coin will be used in international settlements by major corporations with the intention of helping to speed up transactions that normally take a day or longer using existing options. Farooq identified treasury services and securities as next in line, and suggested that the cryptocurrency could expand into other areas if it proves successful. JP Morgan is starting small with the coin, only making it available to a small number of customers. The coin differs from other cryptocurrencies in that it is tied to the US dollar, making it what JP Morgan is calling a “stablecoin” that isn’t subject to price volatility.