October 6, 2022
22, Oke-Poka Street, Eredo, Epe Lagos
Cryptocurrency

JPMorgan is creating its own cryptocurrency – JPM Coin

The nation’s largest bank, JPMorgan Chase, is developing its own cryptocurrency. JPM Coin is a cryptocurrency with a set value that can be redeemed for one US dollar. It will not be as freely traded as bitcoin and other cryptocurrencies.

JPMorgan believes that JPM Coin will assist its clients cut their costs and risks by making money transactions instantaneous and reducing the amount of capital they must retain. Every day, JPMorgan moves trillions of dollars on behalf of its customers around the world. JPM Coin is intended for usage by huge institutional customers, not individuals, at least for the time being, though JPMorgan hopes to expand it to a broader range of consumers later this year.

JPMorgan is creating its own cryptocurrency – JPM Coin
JPMorgan is creating its own cryptocurrency – JPM Coin

JPMorgan (JPM) claims to be the first American bank to develop and test such a digital coin. However, on January 1, Signature Bank (SBNY), a considerably smaller New York-based bank, began processing transactions for its corporate clients on its own blockchain network. Its transactions, like those of the JPM Coin, are denominated in US dollars and do not employ a widely traded cryptocurrency like bitcoin.

Signature CEO Joseph DePaolo remarked, “We recognize they’re a $2 trillion bank, and we’re a $47 billion bank.”
He believes that banks’ adoption of blockchain technology will spread swiftly. “You won’t be around in three to seven years if you’re not using blockchain technology as a bank,” he predicted. The existence of JPM Coin was initially disclosed by CNBC. Governments do not issue cryptocurrencies. Their blockchain technology allows them to send payments rapidly while keeping a detailed record of the transactions.

Bitcoin was branded as a “fraud,” “stupid,” and “far too risky” by JPMorgan CEO Jamie Dimon in 2017. Since its peak, Bitcoin, the most well-known cryptocurrency, has lost more than 80% of its value. Dimon stated that while he supports blockchain technology for tracking payments, anyone trading in bitcoin at his bank would be fired “in a second.” He quickly apologized for his severe evaluation, saying that he regrets his remarks and that cryptocurrencies are real and must be studied separately.

On Thursday, the bank clarified its stance on cryptocurrencies once more. “We have always believed in blockchain technology’s promise, and we support cryptocurrencies as long as they are appropriately managed and regulated,” the bank added. “As a globally regulated bank, we feel we have a unique opportunity to responsibly develop capabilities under the supervision of our regulators.”

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