JP Morgan Creats 1st US Bank-Backed Cryptocurrency Which Is Called… JPM Coin! What Else You Should Know

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JP Morgan is rolling out the first U.S. bank-backed – The JPM Coin. Here’s what Nexter.org has found out about it. 

JPMorgan-crypto-us-bank-pic

Source: REUTERS/MIKE BLAKE

What’s JPM Coin? 

US investment bank JP Morgan has created a crypto-currency to help settle payments between clients in its wholesale payments business.

JPM Coin is the first digital currency to be backed by a major US bank.

The crypto-currency, which runs on blockchain technology, has been used successfully to move money between the bank and a client account. JP Morgan says it sees potential in using digital coins to reduce risk and enable instant transfers.

Although JP Morgan’s chief executive Jamie Dimon has publicly criticized Bitcoin – the first crypto-currency in existence – on several occasions, the bank says it has always “believed in the potential of blockchain technology”.

“We are supportive of crypto-currencies as long as they are properly controlled and regulated,” Umar Farooq, JP Morgan’s head of Digital Treasury Services and Blockchain, wrote in an online Q&A page.

JPMorgan-crypto-coin-us-bank-photo

Source: Getty Images

JPM Coin vs Bitcoin

Unlike bitcoin, only big institutional clients of J.P. Morgan that have undergone regulatory checks, like corporations, banks and broker-dealers can use the tokens.

There are other key differences between the bank’s crypto and bitcoin, which J.P. Morgan CEO Jamie Dimon has bashed as a fraud that won’t end well for its investors.

Each JPM Coin is redeemable for a single U.S. dollar, so its value shouldn’t fluctuate, similar in concept to so-called stablecoins. Clients will be issued the coins after depositing dollars at the bank; after using the tokens for a payment or security purchase on the blockchain, the bank destroys the coins and gives clients back a commensurate number of dollars.


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JP Morgan Is Rolling Out 1st US Bank-Backed Cryptocurrency Which Is Called... JPM Coin! What Else You Should Know
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JP Morgan Is Rolling Out 1st US Bank-Backed Cryptocurrency Which Is Called... JPM Coin! What Else You Should Know
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JP Morgan is rolling out the first U.S. bank-backed cryptocurrency - The JPM Coin. Here's what Nexter.org has found out about it. 
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