New York-based investment bank JP Morgan Chase launches the world's first cryptocurrency officially backed by an American bank. Its own, called "JPM Coin". It will be in great demand for instant settlements between bank clients, which corresponds to the spirit of our time.
Journalists and analysts in response to the news did not fail to remind that in 2017 the CEO of JP Morgan, Jamie Dornan, referred to Bitcoin and its counterparts as a "scam". Now the bank has spent money on the development of its own platform for managing tokens "Quorom", which is based on the technology of the Ethereum cryptocurrency. The bank admits that old bank transfer systems like Swift are too cumbersome and slow, but blockchain technology accelerates transactions to acceptable parameters and has no restrictions for international use.
One JPM Coin is equal to $ 1 and is exchanged strictly at this rate. Customers deposit regular money into the bank, exchange it for the required amount of JPM Coin, make their transactions and receive the balance in the form of US dollars. Outside the banking system, the circulation of JPM Coin tokens is not provided and this restriction, according to some analysts, can negate the entire effect of the revolutionary venture. After all, it turns out that JP Morgan simply bypassed its own old restriction on financial transactions, but did not add anything fundamentally new.
But the co-founder of London-based hedge fund Prime Factor Capital, Adam Grimsley, has a different opinion. According to him, the first step is important in any business, and JP Morgan bank became the first of the major players in the market who was able to recognize and correct their mistakes. Many financial institutions are already working with cryptocurrency, but most of them are promising startups and subsidiaries of well-known companies. Here, the bank officially and on a large scale supported the introduction of blockchain and cryptocurrency technologies into its main field of activity. And the rest will now have to act in the role of catch-up.