In a move that could potentially revolutionalize the crypto industry, banking giant JP Morgan has launched its own cryptocurrency, named JPM Coin. What makes this development special is the fact that this is the very first time that a bank in the world has issued a cryptocurrency. The bank will utilize the JPM Coin primarily for settling the payments with its business clients. Experts believe that the development is just the tip of the iceberg as the banking major is exploring the opportunity to foray into blockchain technology too. The benefits of an open ledger technique are visible all around, more so in the case of investment and remittance domains and JP Morgan seems to gear up for leverage blockchain in the investment areas. According to the head of the bank’s blockchain project, Mr. Umar Farooq, the launch of the JPM Coin can be easily considered as a testing stage for the bank before it forays fully into cryptocurrency and blockchain technology space. The application of open ledger technology is quite endless, and one can easily use it while transacting with institutions or corporations, Farooq added.
It is a well-known fact that the chairman of JP Morgan, Jamie Dimon is a detractor of Bitcoin and cryptocurrency; however, considering the rapid adoption of blockchain that banking and financial service industry is witnessing, it hardly comes as a surprise that JP Morgan is also jumping onto the bandwagon. It is indeed a step in the right direction and more importantly, at the right time.
JPM Coin will replace the wire transfers at the bank, and the new cryptocurrency is expected to increase the speed while cutting down the cost significantly associated with the transaction process. Industry analysts believe that this new launch can pose a severe threat to Ripple which is a leading player in the segment of remittances and payments in the industry. The JPM Coin is better poised to receive wide adoption in the industry as many big players in the Fortune 500 list are already a client of JP Morgan. So that you know, the wholesale business of the JP Morgan bank has a daily transaction worth of $6 billion and the rumors are rife that the Wall Street Bank is also going to launch its own cryptocurrency very soon.
The launch of the JPM Coin has a larger implication for the crypto and blockchain industry. It shows a shift in the mindset even among those who were initially opposed to the very concept of digital money and open ledger technology. At the start of 2019, many experts predicted that the year would prove to be difficult for the crypto industry; however, going by the recent developments, the year is proving quite the opposite to the prediction. The adoption of blockchain is very encouraging, and now with one of the biggest names in the commercial banking taking a plunge into crypto, things are looking quite all right.