JPMorgan launches its own cryptocurrency called JPM Coin

In a first for a US bank, JPMorgan Chase has launched its own cryptocurrency in the US. Called JPM Coin, the cryptocurrency will help the bank instantly settle transactions for its clients using its wholesale payments service. The bank moves around $6 trillion daily around the world.

According to details provided by CNBC, JPM Coin is expected to replace wire transfers for international payments which currently use the SWIFT protocol. In addition, the coin will also provide instant settlement for securities and also replace US dollars held by businesses who use JPMorgan’s treasury services. Eventually, JPM Coin may even be integrated into mobile payments.

The JPM Coin is pretty much like a stable coin, since each coin is redeemable with one US dollar. Built on Quorum (Ethereum’s enterprise-focused version), the coin may also be eventually compatible with other standard blockchain networks. The trial is expected to begin in the next few months.

Crypto Twitter goes berserk 

Expectedly, Crypto Twitter completely blasted JPMorgan’s U-Turn on cryptocurrency. Many have still not forgotten JPMorgan CEO Jamie Dimon’s comments about Bitcoin being a fraud scheme. Many others have voiced their concerns around the private, permissioned and centralised nature of its JPM Coin. 

End of the road for Ripple?

Many others have also said that this move may threaten Ripple (XRP). The popular cryptocurrency project is largely focused on international settlements and cross-border payments and if banks start building their own technology, its existence will come into question.

However, Brad Garlinghouse, CEO of Ripple, downplayed the impact of JPM Coin on Ripple XRP. He tweeted:

What do you think? 

Our Take

Whether the JPM coin takes off or not is anybody’s guess, but this move will definitely aid in pushing the cryptocurrency conversation right into the mainstream. This development will be watched closely by regulators and other large financial institutions across the globe. JPMorgan getting into the space definitely adds more weight to pro-cryptocurrency arguments. Let’s hope that the Indian government is watching!