Cryptocurrency continues to make inroads in the United States and the government has shown vast interest in providing a favourable working environment for companies that deal with this form of currency. JP Morgan Chase, one of the largest financial institutions in the world, has been in the forefront advocating for friendly regulations that promotes the industry and not cripple it and is soon going to launch JPM Coin.
JPM Coin Launched by JP Morgan Bank
JP Morgan Chase is one of the most notable financial institutions in the world. The bank has launched the first cryptocurrency that is fully banked by a highly regulated financial institution called JPM Coin. While speaking to the press in several interviews, Jamie Dimon, the bank Chief executive has repeatedly stated that bitcoin is a fraud since it is very volatile and prone to countless risks.
Reports indicate that J.P Morgan Chase alone is able to do transactions worth $6 trillion every day to different parts of the world for corporations, governments, and businesses. The JPM Coin will be fully backed by the bank and the trials are expected to start in the next couple of months.
What is JPM Coin?
JPM Coin is a digital coin that was created by a group of highly skilled engineers to facilitate instant and secure payments. This new product is a clear indication that the bank is aware of the huge potential of cryptocurrencies and blockchain technology. It is positioning itself for the future where cross-border payments and corporate debt issuance will be done using blockchain technology.
JPM Coin and other digital tokens that will be backed by banks and national governments will make it possible for financial institutions to do transactions faster and more efficiently. More people will also invest in the digital currencies once they are approved for global use by the various national, regional, and global financial regulators.
J.P Morgan Chase new cryptocurrency will come as a surprise to most people owing to the bear run that is currently being experienced in the market. The technology has proven to be resilient, that is, capable of bouncing back after financial crisis.
The bank has also revealed that only big institutional clients who are already using J.P Morgan services and have undergone a series of regulatory checks will be allowed to use the digital tokens.
Three Applications of JPM Coin
JPM Coin can be used in three different scenarios by the accredited users. The first use is making international payments for large corporate clients. This kind of transactions are currently been done through wire transfer and rely on the old SWIFT network.
JPM Coin can also be used to carry out securities transactions. Last year in April, the bank carried out a number of debt issuance tests on blockchain network.
The third and final application of JPM Coin is that huge corporations that currently use J.P Morgan treasury services will be allowed to exchange the dollars they hold in different subsidiaries across the world for JPM Coin. Get more cryptocurrency news here.