JP Morgan is launching its own cryptocurrency, JPM Coin. The announcement of the first crypto coin backed by a major US bank may come as a surprise to those who are aware how consistently the executives of the company have been bashing cryptocurrencies like Bitcoin over the last few years.
JP Morgan, with a daily traded value of over $6 trillion, is moving to blockchain as a future plan. Its new cryptocurrency will be used to settle payments with immediate effect. While the company has been slamming Bitcoin, it has consistently shown a lot of faith in blockchain technology.
According to the head of JP Morgan’s blockchain projects, Umar Farooq, the applications of blockchain are “frankly quite endless.” Anything that has a distributed ledger involving corporations or institutions can use the technology, he said.
JP Morgan’s cryptocurrency, JPM Coin holds the same value as $1. Clients will receive coins after they deposit US dollars in their bank account. The bank will use tokens of payment on the blockchain and destroy the coins while giving equal number of dollars to the client.
In January 2014, JP Morgan CEO Jamie Dimon said that Bitcoin had “a terrible store of value.” Next year in November, he said Bitcoin would not survive. In January 2016, he said Bitcoin was going nowhere.
Dimon refused to talk about Bitcoin anymore when he was asked about it in October 2017. In the previous month, he called Bitcoin “a fraud.”
Dimon said in October last year that he did not “give a sh*t” about Bitcoin, CCN reported.
“Blockchain is real, it’s technology, but bitcoin is not the same as a fiat currency.”
According to CNBC, there are major differences between JP Morgan’s cryptocurrency and other major cryptocurrencies like Bitcoin. JPM is more in line with the so-called “stablecoins” as its value is less likely to fluctuate because of its dependence on the US dollars.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]