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JP Morgan is launching 'JPM Coin,' its first cryptocurrency

By Polycount · 12 replies
Feb 14, 2019
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  1. According to a recent CNBC report, the financial giant is launching "JPM Coin," a bank-backed cryptocurrency that will primarily be used to "instantly settle" transactions between clients in its wholesale payments business.

    This news might come as a surprise to those who are familiar with JP Morgan's previous views on Bitcoin. The bank's CEO, Jamie Dimon, has previously called Bitcoin a "fraud" - it seems Dimon now thinks he and his team can do better.

    Of course, it's also worth noting that JPM Coin will likely only be used for very specific purposes (such as the scenario laid out above) - there are no initial coin offerings planned for it, and the average crypto enthusiast will probably never own even a fraction of one of the coins.

    Regardless, this could be seen as a win for the crypto community at large. Even if JPM Coin is never actively traded, it's still the first time a major US bank has openly embraced cryptocurrencies.

    Naturally, there's potential for the opposite sentiment to emerge as well. Some hardcore crypto holders feel that "stablecoins" like what JP Morgan is hoping to launch are essentially scams in and of themselves; or at least less exciting than market dominators like Bitcoin.

    Time will tell whether or not other financial institutions will follow JP Morgan's lead.

    Permalink to story.

     
  2. OutlawCecil

    OutlawCecil TS Guru Posts: 594   +434

    Our best guess of a futuristic world:
    One global currency or possibly no actual currency at all

    Real direction it's going:
    Everybody has their own made-up currency and it's value is only what everybody agrees it should be on that specific day.
     
  3. iamcts

    iamcts TS Addict Posts: 213   +141

    Blockchain is innovative, but the whole currency aspect will always make people think twice before investing.
     
  4. Uncle Al

    Uncle Al TS Evangelist Posts: 4,869   +3,311

    If JP Morgan is connected, pull out your money and put it in chewing gum where it will be a lot safer and sweet!
     
    havok585 likes this.
  5. havok585

    havok585 TS Addict Posts: 191   +54

    I was about to say that, any major US bank (private) spells doom for your financials in the long run.
     
    piechan likes this.
  6. captaincranky

    captaincranky TechSpot Addict Posts: 14,518   +3,702

    "According to a recent CNBC report, the financial giant is launching "JPM Coin," a bank-backed cryptocurrency that will primarily be used to "instantly settle" transactions between clients in its wholesale payments business".

    Given the usage profile, it just seems like they're trying to put a hip look on wire transfers....
     
  7. Knot Schure

    Knot Schure TS Booster Posts: 163   +57

    JPM Coin cannot be considered a cryptocurrency. It is, as best, a bank coin, and a bank coin is neither competition against, or equal to Bitcoin in the slightest.

    JPM Coin is nothing like Bitcoin, it is very close to Ripple, which is a little unnerving. Ripple is all software, and software can easily be replicated.

    If Ripple was smart in this circumstance, they would have approached or even tried to partner with JP Morgan for this protocol, because the use of a trusted bank has a much bigger threat to Ripple than it does to Bitcoin.

    Thus JPM is neither cryptocurrency or stablecoin, even if it is found on a blockchain ledger.

    There have been many failures and successes as cryptocurrency has evolved through the years. Even if the coin challenges the economy and the traditional market, it will not be included as a cryptocurrency. It simply does not have the golden Bitcoin power.

    Censorship resistance is a core value of Bitcoin and the blockchain, drastically setting it apart from modern banking. A crypto transaction is always posted on the blockchain, and the transactions cannot be deleted, making blockchain honest - where a bank’s list of transactions could be altered.
     
  8. Lifeispossible

    Lifeispossible TS Member Posts: 20

    So can they sell ten times more coins than what they have since it's bank-backed just like what they do with printed fiat
     
  9. sushi board

    sushi board TS Rookie

    Bitcoin's a scam but JPM coin's the real deal eh? :laughing:
     
  10. jobeard

    jobeard TS Ambassador Posts: 12,562   +1,441

    LOTS of assertions there without any evidence shown or referenced. It's entirely possible (imo highly likely) that JPM will be implemented on blockchain (why reinvent the wheel).
     
  11. treetops

    treetops TS Evangelist Posts: 2,356   +402

    They are legitimizing crypto with this move, while attracting those afraid of current crypto. But I doubt they will attract anyone who wants real anonymity. Using a major USA bank kind defeats the purpose?
     
  12. captaincranky

    captaincranky TechSpot Addict Posts: 14,518   +3,702

    As I said in post #6, given the projected usage of these "coins", (as claimed in the article), all JP Morgan is really doing, is implementing or revamping automatic payments and large wire transfers with block chain technology.

    In other words, putting a hip new, (perhaps slightly more secure?) face on the same old sh!t..
     
    Last edited: Feb 17, 2019
  13. tellmewhy

    tellmewhy TS Rookie

    The catalyst which will enforce the cryptocurrency ecosystem is an interface which will allow the secure OFFLINE transactions.

    In practice that means trusted wallets with a little cpu power and an extra flexible code shell on the coins that will allow two wallets to agree on a transaction without the need to ask for verification from a central node.

    So that way it will be like real money, they will be produced in central nodes (ex banks) and they will be freely used without the need to be online to ask the central nodes for verificaion on every transaction.
     

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