JPMorgan Chase became the first US bank to launch its own digital token representing a fiat currency. In a press release and an interview published on Valentine's Day, the bank announced the creation of JPM Coin, a block-chain-based technology to facilitate the transfer of payments between corporate customers. Coin has significant differences from pre-existing crypto currencies such as Bitcoin. Because the money that JPMorgan holds in the hands of Coin 1: 1 can be converted into money.
What is JPM Coin?
JPM Coin is actually a tool that helps transfer payments instantly between some JPMorgan customers. In order to exchange money over a block chain book between client parties, a digital currency must be used to facilitate the transaction. JPM Coin is a tool that helps to complete this process more efficiently than traditional settlements.
JPM Coin itself is not the money in the traditional sense. On the contrary, a digital token representing the US dollar held by JPMorgan Chase. Value is equal to US $ 1. Assuming that JPMorgan Chase believes that JPM Coin's first launch will be successful, the bank says it plans to use JPM Coin for additional currencies in the future.
The process for customers to use JPM Coin is quite simple. First, the customer deposits a sum into a particular account and receives the JPM Coins corresponding to that amount. These coins can then be used to simplify transactions with a block chain network and with other JPMorgan customers. Finally, customers can use JPM Coins at any time to buy US dollars from the bank.
Although JPM Coin is similar to stablecoins like Tether, it has some important differences. First, these coins are open to access and available to the public. JPM Coin is only available and available to specified JPMorgan customers. In particular, these customers should be corporate customers of the bank. While JPM Coin is designed to facilitate the transfer of payments, most stablecoins are considered as investment instruments. Finally, although generally stablecoins vary in value depending on the transparency of collateral owners, JPM Coin will always be in cash in the currency held by JPMorgan.
What does JPM Coin Mean?
As one of the largest banks in the world, taking part in the digital currency, JPMorgan has made a contribution to the crypto-money world, where stability and credibility have dominated in recent years. In addition, JPMorgan Chase as a nationally approved bank complies with US and international banking laws and regulations. Regulatory oversight has long been a point of content within the crypto-currency field. Supporting the crypto-money area by a large bank can enable investors to start exploring the digital currency with a skeptical view of the crypto-currency area. However, it is also important to note that at this time JPM Coin is only a prototype and the regulators are not yet focused on this initiative.
What does the future bring?
As is currently the case, JPM Coin will only be used to facilitate payments between JPMorgan Chase's corporate customers. Over time, the bank plans to expand this program to include other currencies and potentially individual customers. JPM Coin, the first program of its kind, realized by a large US bank, can help to start a new era for the establishment of a new digital currency transaction in the main financial world. What is so interesting is that they all occur in spite of the harsh words that the CEO of the bank, Jamie Dimon, used against Bitcoin in the past.