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JP Morgan Creates a "Digital Coin"

JP Morgan Creates a "Digital Coin"

Posted by BANKUS on March 19th 2019

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J.P. Morgan became the first U.S. bank to create a digital coin based on fiat currency. The JPM Coin is based on blockchain technology allowing instantaneous transfers of payments between accounts.

"However JPM Coin isn’t really core true cryptocurrency but a digital token representing and linked to the US Dollar since a JPM Coin will always have the same exact value as to the U.S. dollar." said CEO director of BANKIS.

This in theory however defeats the purpose of having a crypto currency as it still bond to the inflated fiat currency and still linked to centralization rather than being a decentralized currency which is the main motto of a true crypto currency based on its founder Nakamoto under Bitcoin and the blockchain technology released back in 2009 and which still ruled under those principles today.

So what JPM does is when one client sends tokens to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, apparently reducing the settlement time. Over time, JPM Coin will be extended to other major fiat currencies.

JPM Coin is currently a prototype that will be tested with a small number of J.P. Morgan’s institutional clients, with plans to expand the program later in the year. JPM Coin is currently designed for business-to-business money only during the testing phase. JPMorgan believes that the coin will reduce costs and increase efficiency for both end customers and businesses.

Crypto expert J. Smith at BANKUS added; "Although JP Morgan calls it as its “own crypto currency” as JPM Coin, the term and idea seems to be somehow misleading and inaccurate as the JPM coin is not regulated by its own value but totally based and dependent on the US Dollar on which many believe this should be called a digital dollar rather than new a crypto currency".