In a historic first for the US banking industry, JPMorgan Chase (JPM), a United States banking giant, is launching its cryptocurrency.
In a previously doubted move by commentators, JPM, the multinational lending corporation, is bound to release “JPM Coin.” It is a crypto-based currency that uses blockchain technology to increase settlement efficiency, initially within three of its operations.
Umar Farooq, who leads the company’s blockchain exploration, said that he is “buoyant on blockchain technology’s perspectives at the bank.” He said that “anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction.”
“The applications are frankly quite endless; anything, where you have a distributed ledger which involves corporations or institutions, can use this,” he told CNBC.
JPM Coin is aimed to be a faster and more efficient alternative to other existing options like SWIFT, that usually take a day or longer for a transaction to be completed. The company will use its own cryptocurrency, initially to focus on international settlements by major corporations to speed up the transaction time.
Many multinational corporations have started to adopt the use of cryptocurrency and blockchain technology to speed up their transaction process, especially with their international clients. Earlier this year, H&M Development has announced that they will start to accept Bitcoin and other digital money from clients abroad.
Additionally, the company is looking at treasury services and securities transaction to be in line in using such technology. Farooq said that they are eyeing the expansion of the use of cryptocurrency if initial tests and use proves to be successful.
However, only a small amount of the total funds involved in the three areas would affect JPM Coin in their launching, suggesting that this limit would not hold the company back from exploring the technology more.
“Even if this was limited to JPM clients at the institutional level, it shouldn’t hold us back,” he added.
It can be remembered that the banking giant became notorious among cryptocurrency participants after CEO Jamie Dimon openly called Bitcoin a “fraud” in mid-2017. He later personally refuted his earlier statement to Cointelegraph at the World Economic Forum last year. /apr