The cryptoverse is abuzz with excitement and some serious criticism as crypto’s long time critic, J.P Morgan have launched the JPM Coin, a fiat backed Cryptocurrency.
Although the criticism has largely been from J.P CEO Jamie Dimon who has even gone to the extent of dubbing cryptocurrencies as a “fraud”, the idea of a bank owing a crypto is pretty out there!
However, not only has the bank defied all odds but has defied them by becoming America’s first bank to launch their very own Cryptocurrency. According to the firm, their new token can be used in all sorts of exchanges and trading such as using the bank’s services.
In an interview with CNBC, Umar Farooq who is the Head of the bank’s Blockchain projects, told CNBC, “So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction.”
However, only a tiny fraction of the bank’s massive $6 trillion daily activities will actually be executed by the JPM Coin. Farooq further stated that , “The applications are frankly quite endless; anything, where you have a distributed ledger which involves corporations or institutions, can use this.”
The JPM Coin will however be only redeemable in exchange for actual dollars and will be accessible by only the bank’s institutional clients. According to the JP Morgan website, works on it’s own Blockchain technology called Quorum.
The JPM Coin will be issued on Quorum Blockchain and subsequently extended to other platforms. JPM Coin will be operable on all standard Blockchain networks.
In the interview, Farooq listed three viable use cases for the newly created crypto which include more reliable and faster securities transactions through blockchain technology, faster real-time fund transfers internationally and finally, a more transparent method of representing cash rather than required physical evidence as is needed by fiat currency.
Redditors are applauding JP Morgan CEO’s unmatched spread of FUD while simultaneously reaping in the benefits of being one of the first in his industry to invest in blockchain technology.