JP Morgan’s new digital ‘coin’ is not a cryptocurrency, or even a stablecoin

[vit05]

JP Morgan’s new digital ‘coin’ is not a cryptocurrency, or even a stablecoin

thenextweb

JP Morgan has a new digital asset, JPM Coin. It’s not really a cryptocurrency, and it’s not quite a stablecoin, but it does use a blockchain. It’s mostly referred to as a digital coin.

Still, JPM Coin is set to square off against all the other redeemable bank tokens in the market, eventually.

Announced today via a flurry of reports, JPM Coin’s drawcards are listed as each token being redeemable for fiat, and that its powered by a “blockchain,” specifically Quorum, a distributed ledger platform developed by JP Morgan and some of its partners.

The network powering JPM Coin will be entirely permissioned (private, or if you prefer: centralized), controlled by the bank itself. It will reportedly be available only to its institutional customers that pass JP Morgan‘s Know-Your-Customer measures.

That’s really about it. It is backed by the bank‘s “strong balance sheet,” it’s attention to cybersecurity, and supposedly robust regulatory oversight. It says this should assure institutional players.

But it’s only really specific institutional players that will get access to this… thing. They can use it to send money between thick bank accounts.

Ultimately, Jamie Dimon isn’t necessarily trying to pull the wool over your eyes. It’s quite honest this product is probably not for you, and if you are looking for cryptocurrency, you might want to check out something like Bitcoin or Ethereum.



JP Morgan's Quorum blockchain opens new world of trading opportunities

digital-coin-payments



Please do not let them turn any virtual currency into a cryptocurrency. There are some basic features that distinguish Bitcoin from all other projects already invented.

[Pab]

It is only private JPM digital currency
It will be used only in JPM banking system
But it is good move done by JPM it will save JPM lot of money on transaction fee

[Slow death]

I wonder, why the hell all news channel are giving so much attention to this:

JPMorgan Chase to Launch ‘JPM Coin,’ Using Crypto to Speed Settlements

Jamie Dimon Steals Bitcoiners’ Hearts as JP Morgan Launches Bank-Backed “JPM Coin” Cryptocurrency

Newsflash: Bitcoin Basher Jamie Dimon & JP Morgan Just Launched Their Own Cryptocurrency

JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

[tenakha]

IMO creating decentralized digital money by one of the major banks would have been an unpredictable movement. We can accept this as a development for the crypto world, althought is hard to say anything about how such initiatives will influence decentralized money. But, the increase of such attempts by the great powers can direct people to another direction.

[tyz]

JP Morgan’s new digital ‘coin’ is not a cryptocurrency, or even a stablecoin

I am not sure why this topic matters in this forum. It is obviously not a decentralized crypto currency, just a "digital coin" completely controlled by the bank. I don't think such coins are a benefit for the development and acceptance of crypto currencies, in contrary, they dilute the view of ordinary people in real cryptocurrencies (similar like Onecoin did).

[KingScorpio]

why are you guys so obsessed with discriminating against other cryptocurrencies? 

[bitart]

I wonder, why the hell all news channel are giving so much attention to this:

JPMorgan Chase to Launch ‘JPM Coin,’ Using Crypto to Speed Settlements

Jamie Dimon Steals Bitcoiners’ Hearts as JP Morgan Launches Bank-Backed “JPM Coin” Cryptocurrency

Newsflash: Bitcoin Basher Jamie Dimon & JP Morgan Just Launched Their Own Cryptocurrency

JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

This is called marketing and branding That's all...

Why this is important for the banks? This system (centralized, blockchain backed system) can handle a huge amount of money in a really little time (which the current SWIFT system is incapable, it's slow), so where time is money, there you can make difference with a kind of system like this. It will cost less money for them to move huge amount of money compared to the SWIFT system, so if they will just don't touch the pricing of the international wire transfers, just speed them up significantly, it will make them a hell lot of money...

[100bitcoin]

A blockchain, controlled by JPM, is not a blockchain.

[bitmover]

I didn't research about this new coin, but decentralization is not necessary for all projects. Let banks and financial institutions use blockchain technology to improve and scalate their services, it will be better for everyone. Like xrp for example (which I believe is a nice project)

[pooya87]

i can't help feeling an urge to start a big social media campaign calling JPMCoin fraud as their CEO did in 2017 about bitcoin and see what happens when we do that and how would they react to something like that

I wonder, why the hell all news channel are giving so much attention to this:

it is pretty simple if you look at other articles in the links you posted. they are desperate for something that is going to be clicked and redirects traffic to their shitty site. not to mention that most of them are just copying news from others so it is enough that one big place publishes something for all these shitsites to copy the same thing.

[dothebeats]

I wonder, why the hell all news channel are giving so much attention to this
...

Paid exposure, or perhaps the media is also not giving it to JP Morgan considering that its CEO is always badmouthing bitcoin and cryptocurrencies in general. It's funny to think that even them as an entity would be interested on creating something that they so do despise. Anyway as it turns out, this is like some exclusive token or currency that can only be used on JPM services that can be swapped for fiat if the users needed, so I don't think cross-payments into other services would be possible not unless the company partners with those services first.

[Kemarit]

It is only private JPM digital currency
It will be used only in JPM banking system
But it is good move done by JPM it will save JPM lot of money on transaction fee

Exactly, this is all private ledger for their own used so I don't know why people are very excited by this news. Yes, probably JPM is using the name to hype their project, but it doesn't have any correlation to crypto itself. What do you think though? Will they go and lay-off people since this technology will makes some of their employees redundant? No need for someone to clear transactions manually since every data put in the ledger is accessible by multiple people in the same time.? No?

[joromz1226]

I wonder, why the hell all news channel are giving so much attention to this:

JPMorgan Chase to Launch ‘JPM Coin,’ Using Crypto to Speed Settlements

Jamie Dimon Steals Bitcoiners’ Hearts as JP Morgan Launches Bank-Backed “JPM Coin” Cryptocurrency

Newsflash: Bitcoin Basher Jamie Dimon & JP Morgan Just Launched Their Own Cryptocurrency

JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

Perhaps, this was part of their marketing strategy to promote JPM, also He has a capability to influence other's
all over the places but not the majority of the community in this industry. It is obviously a type of centralized coin, it is still good to use
a based decentralized platform.

[RivAngE]

i can't help feeling an urge to start a big social media campaign calling JPMCoin fraud as their CEO did in 2017 about bitcoin and see what happens when we do that and how would they react to something like that

Please don't, let's not give them free advertisement! There will be some people who will give them their money once they hear the news (if it'll be publicly traded)

But I don't think their goal is to take people's money, they wouldn't make that much by manipulating the price of their coin since the few who would initially trust them wouldn't invest in them again and the damage on their fame and stock price would be more damaging.

The key word is "bank-backed coin", so it's gonna be "backed" from something other than miners or stakers... so in other words it'll be centralised and they may even have control of how many and how often coins are issued.
They could have called it USDT2, it'd sound better and it'd be better at describing this JPMCoin.

[eroejoe]

I wonder, why the hell all news channel are giving so much attention to this:

JPMorgan Chase to Launch ‘JPM Coin,’ Using Crypto to Speed Settlements

Jamie Dimon Steals Bitcoiners’ Hearts as JP Morgan Launches Bank-Backed “JPM Coin” Cryptocurrency

Newsflash: Bitcoin Basher Jamie Dimon & JP Morgan Just Launched Their Own Cryptocurrency

JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

They are probably payed to do so.

Why this is important for the banks? This system (centralized, blockchain backed system) can handle a huge amount of money in a really little time (which the current SWIFT system is incapable, it's slow), so where time is money, there you can make difference with a kind of system like this. It will cost less money for them to move huge amount of money compared to the SWIFT system, so if they will just don't touch the pricing of the international wire transfers, just speed them up significantly, it will make them a hell lot of money...

I agree with you, they can not stop the technology improvement, so they must take advantage from it, which is actually not that bad.

[Juggy777]

It is only private JPM digital currency
It will be used only in JPM banking system
But it is good move done by JPM it will save JPM lot of money on transaction fee

I’ll agree this is not a crypto or a stable coin they’re trying to sell institutional investors a centralised coin for their own benefits. I’m glad people will not be able to get their hands on it, imagine someone wishing to buy a decentralised bitcoin, ending up buying a centralised coin like this. I believe saving on fees could be what led them to make this, but when they’ll convert to fiat won’t fees apply again?.

[figmentofmyass]

The key word is "bank-backed coin", so it's gonna be "backed" from something other than miners or stakers... so in other words it'll be centralised and they may even have control of how many and how often coins are issued.

it's completely permissioned. so it more closely resembles a bank account in their internal databases than any sort of a cryptocurrency. i honestly don't see the point in a blockchain if it's completely centrally administered. if they want to broker crypto trades, why not launch their own crypto trading platform and/or settle derivative trades through regular channels?

[mrdeposit]

In my opinion JP coin looks like stable money and it is looks to guarantee its place in advance for the future. I do not hope this could impact on Bitcoin or other cryptos. Also, it is for just corporate customers as you write so, for their own customers, and accordingly will not influence anything.

[pinoyden]

In my opinion JP coin looks like stable money

Yes it is because he said it is not a currency . but he also said that isnt also a stable coin .

I do not hope this could impact on Bitcoin or other cryptos.

It does . since it is still an investment  . existing crypto investers might wanna try this one out  . other potential investors might also want to check this before crypto but since it isnt volatile . their income is only limited , they still go for cryptos .

[n0ne]

JP Morgan one of the top contributor to the financial institution has come up with his own cryptocurrency. His focus is towards centralized services, and as a part to keep the banking community stick to the banking system he has developed this coin. As in the thread title it isn't a cryptocurrency or a stablecoin. Also I remember the statement described by John McAfee that the development is his, but the success is in the hands of people, they need to accept it.

[Kakmakr]

I wonder, why the hell all news channel are giving so much attention to this:

JPMorgan Chase to Launch ‘JPM Coin,’ Using Crypto to Speed Settlements

Jamie Dimon Steals Bitcoiners’ Hearts as JP Morgan Launches Bank-Backed “JPM Coin” Cryptocurrency

Newsflash: Bitcoin Basher Jamie Dimon & JP Morgan Just Launched Their Own Cryptocurrency

JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

A lot of media are shilling for big Banks, so this is not strange at all. Bitcoin has been bashed and tarred and feathered by these media channels for years and it is not going to stop anytime soon.  An announcement like this, also draw attention to the fact that Bitcoin's enemies are copying it's success to survive the disruption. 

The problem with shitcoins like this is the fact that it is permissioned and centralized and not accessible to the general public. They are creating their own in-house Monopoly money to push down their overheads and to be more effective. < The old financial settlement systems are outdated and ineffective > 

[mich]

This is the first of its kind of a bank coin but just wait until other multinational investment bank and financial services companies do the same thing.
These types of institutions are playing with trillions of dollars so if their coin fails in value, they still have much fiat to fall back on.
The same can not be said for applications that invested fiat into their applications and dont even have a working product.

[figmentofmyass]

This is the first of its kind of a bank coin but just wait until other multinational investment bank and financial services companies do the same thing.
These types of institutions are playing with trillions of dollars so if their coin fails in value, they still have much fiat to fall back on.

they shouldn't ever fall in value though. they shouldn't have any speculative value in the first place. the whole system is permissioned and everything is centrally administered and reversible. the whole thing sounds like a gimmick tbh. it's not even an interbank system with federated consensus. it's just a private "blockchain", a glorified database run by chase. why would other banks prefer this to the legacy system?

[Mishael]

I wonder, why the hell all news channel are giving so much attention to this:

JPMorgan Chase to Launch ‘JPM Coin,’ Using Crypto to Speed Settlements

Jamie Dimon Steals Bitcoiners’ Hearts as JP Morgan Launches Bank-Backed “JPM Coin” Cryptocurrency

Newsflash: Bitcoin Basher Jamie Dimon & JP Morgan Just Launched Their Own Cryptocurrency

JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

This is a strategy to promote JPM, whatever it is we are still faced by an intelligent person in taking investors' hearts if they succeed.
Certainly, it will be a special moment for JPM for the news delivered to the public.

[RivAngE]

I wonder, why the hell all news channel are giving so much attention to this:

JPMorgan Chase to Launch ‘JPM Coin,’ Using Crypto to Speed Settlements

Jamie Dimon Steals Bitcoiners’ Hearts as JP Morgan Launches Bank-Backed “JPM Coin” Cryptocurrency

Newsflash: Bitcoin Basher Jamie Dimon & JP Morgan Just Launched Their Own Cryptocurrency

JPMorgan Launches JPM Coin, World’s First Bank to Launch Cryptocurrency

This is a strategy to promote JPM, whatever it is we are still faced by an intelligent person in taking investors' hearts if they succeed.
Certainly, it will be a special moment for JPM for the news delivered to the public.

If that was all, then it didn't have a huge success so far. Their shares are up 3.19% the last 5 days while S&P500 is up 2.11%. Nothing impressive.
For comparison, when Kodak announced Kodakcoin their shares reached up to 87% in two weeks!!

[erikoy]

This is the first of its kind of a bank coin but just wait until other multinational investment bank and financial services companies do the same thing.
These types of institutions are playing with trillions of dollars so if their coin fails in value, they still have much fiat to fall back on.
The same can not be said for applications that invested fiat into their applications and dont even have a working product.

JP Morgan has been studying the cryptocurrency of course and this is a huge business so therefore they could not just invest or make a way to waste their money in crytocurrency. Well just going to find out how they will going to work out here in cryptocurrency. I bet there will be some good turns especially now that one of the establish company has joined cryptocurrency.

[Supercrypt]

It is basically a ripple like system for transactions without actually having any coins to back it up. Its basically a blockchain system that would allow them to send and receive money for cheap and fast without dealing with the old legacy systems.

Normally, it took so much digital space to send and receive money from any other place and it cost them so much and it had a lot of paper work deals as well, with this method they are basically making it simpler and make it faster so they could continue with the work part of the business instead of transactions itself.

Ripple does exactly this but they are using ripple coin while doing it, since they are a bit shady at the centralized version part of the coin and considering the price could change at any time JP Morgan realized it would be safer to use their own version.

[bitart]

This is the first of its kind of a bank coin but just wait until other multinational investment bank and financial services companies do the same thing.
These types of institutions are playing with trillions of dollars so if their coin fails in value, they still have much fiat to fall back on.

they shouldn't ever fall in value though. they shouldn't have any speculative value in the first place. the whole system is permissioned and everything is centrally administered and reversible. the whole thing sounds like a gimmick tbh. it's not even an interbank system with federated consensus. it's just a private "blockchain", a glorified database run by chase. why would other banks prefer this to the legacy system?

Global banks could have some advantage of this system, today they use the old and slow legacy system and the transactions are expensive and needs a lot of manual work on the sender and also on the receiver side. In the EU, they use SEPA which is a kind of quicker and automated system (less manual work needed, so quicker and cheaper), a blockchain based automated system would need even less manual work so it would be more quick and even more cheap).
So if there's a bank who wants to transfer internationally between it's subsidiaries, it can be a solution for intra bank transfers.

Edit: Typos

[magneto]

It's a move that will not benefit anyone other than the institutions and investors that JPMorgan are dealing with internally, yet Bloomberg is trying to make it seem like it had some kind of positive influence on bitcoin's price increases over the past few days.

These centralised digital assets shouldn't be put in the same category as decentralised cryptocurrencies. Period. They are not store of values, they are not trustless (in fact, there is every possibility that JPMorgan is does not have a full reserve structure backing the value of the coin), and they are certainly in full control of the corporate.

I do see though that in the future more corporates roll these blockchain based assets out, because of the fact that it'll greatly increase efficiency in their business. However, I don't see any association with BTC at all here.

[Indrawan77]

JP Morgan’s new digital ‘coin’ is not a cryptocurrency, or even a stablecoin

I am not sure why this topic matters in this forum. It is obviously not a decentralized crypto currency, just a "digital coin" completely controlled by the bank. I don't think such coins are a benefit for the development and acceptance of crypto currencies, in contrary, they dilute the view of ordinary people in real cryptocurrencies (similar like Onecoin did).

I agree with this, the idea of crypto supposed to be decentralised, so we got the freedom to used the coin, a centralised coin will be the same with fiat, and we don't need that, the JP morgan coin got a huge fuss because people misunderstood about the coin, people thought that finally a big bank already support the crypto

[RivAngE]

This is the first of its kind of a bank coin but just wait until other multinational investment bank and financial services companies do the same thing.
These types of institutions are playing with trillions of dollars so if their coin fails in value, they still have much fiat to fall back on.

they shouldn't ever fall in value though. they shouldn't have any speculative value in the first place. the whole system is permissioned and everything is centrally administered and reversible. the whole thing sounds like a gimmick tbh. it's not even an interbank system with federated consensus. it's just a private "blockchain", a glorified database run by chase. why would other banks prefer this to the legacy system?

Global banks could have some advantage of this system, today they use the old and slow legacy system and the transactions are expensive and needs a lot of manual work on the sender and also on the receiver side. In the EU, they use SEPA which is a kind of quicker and automated system (less manual work needed, so quicker and cheaper), a blockchain based automated system would need even less manual work so it would be more quick and even more cheap).
So if there's a bank who wants to transfer internationally between it's subsidiaries, it can be a solution for intra bank transfers.

Edit: Typos

But why would a bank trust the solution and software of another bank, which may even be on a different continent?
What would happen to whoever owns this JPcoin if JP closes or go bankrupt one day?

Unlike this closed and centralised system, it'd make more sense for a financial institution to go for XRP. Unlike what many uninformed people say, XRP is decentralised and if one day Ripple Labs shutdown, no one will lose their money.
They might stop receiving updates on the xRapid software, but someone will take Ripple Lab's place and continue developing the system.
Also if many would try to take Ripple's place, the nodes will decide if the blockchain will respect the decision of the new development team, just like it happens with miners in PoW.

So, why would anyone prefer JPcoin over XRP?

[bitart]

...
So, why would anyone prefer JPcoin over XRP?

Because of marketing, because average joes belive in the old and well established banks rather than the new  tech stuff...
Average joes will always trust who they are told (by the media) to trust and won't search for the fine print and for the technical details...

[RivAngE]

...
So, why would anyone prefer JPcoin over XRP?

Because of marketing, because average joes belive in the old and well established banks rather than the new  tech stuff...
Average joes will always trust who they are told (by the media) to trust and won't search for the fine print and for the technical details...

You have a good point, but both JPcoin and XRP are targeting big financial businesses, not "the average joe". It seems like JPcoin won't even be publicly traded.
I have no doubt that the mass media will sanctify JPcoin as you're saying, but true businesses are choosing and using XRP already, for example, the Euro Exim Bank
https://ripple.com/insights/how-european-businesses-are-using-blockchain-to-expand-globally

Well... sorry I actually turned the conversation into JPcoin vs XRP!
But the nature of this JP-thing is such that it'll be naturally compared to XRP.

[Reid]

Maybe it is not really that big of a news.
No need to make big efforts for them. This way you are already giving them free advertisements.
Perhaps we should be charging them for something like this.

If it is just for them then leave it be.
It wont help much for the market of crypto currencies. They may also hide this with their clients. They are saving a lot while the annual returns stays at a low amount.

[futile-resistance]

It’s no longer a new thing that JP Morgan has another advanced resource, JPM Coin. It's not by any stretch of the imagination digital money, and I am aware it's not exactly a stablecoin, this however uses a blockchain. It's generally alluded to as a computerized coin.

In any situation, JPM Coin is set to collide against the various redeemable bank tokens in the market, in the long run. The system fueling JPM Coin will be completely permitted (private, or on the off chance that you lean toward: concentrated), constrained by the bank itself.

[kakonhat]

I don't like to buy JP Morgan's coin at all because I don't think so it can be one popular digital coin. It's good that JP Morgan has understood the value of blockchain. And that's why he has chosen it. We can say him, Welcome into the real future.

[wuvdoll]

It is not a "coin" , that is what the whole topic is about, I don't know if people are commenting without reading but its not a coin, it is not even a token. It is just blockchain system that is built to transfer money around easily.

I mean it is great way to utilize blockchain and I kind of understand why, not like they were sending money in big money trucks before but now we at least know that blockchain is much better technology than whatever other digital system they used until now.

IT department probably came up with this and they showed how it would be cheaper and easier to transfer money around and gave a projection of how much they could save and considering it is insanely cheap it was some big number so the head of the company realized they could profit from this move and gave the green light.

[Google+]

I don't like to buy JP Morgan's coin at all because I don't think so it can be one popular digital coin. It's good that JP Morgan has understood the value of blockchain. And that's why he has chosen it. We can say him, Welcome into the real future.

I think some years ago I saw JP Morgan getting a case that made many traders lose and lose the bitcoin they have, so I prefer not to repeat the mistakes that occur like those who lose because of JP Morgan.

[Theb]

As from what I read JPM coin is only used within the system of the company that customers are required to used in all of their transactions within the company which means that their financial institution customers have no other way to complete the transaction without using their JPM coin, the thing is it will be efficient for JPMorgan but the only angle I am seeing why they did this is they want to make more money out of their customers through this new process, they might want to give them additional cost through transaction and handling fees which I'm sure they will do given with the new system.

[bitart]

...
IT department probably came up with this and they showed how it would be cheaper and easier to transfer money around and gave a projection of how much they could save and considering it is insanely cheap it was some big number so the head of the company realized they could profit from this move and gave the green light.

Because this kind of system is highly automatized, they can really cut some costs on the labour (which can be a really high cost in a bank), so it's possible that they really can save if they develop this system and they start to use it.

[RivAngE]

It is not a "coin" , that is what the whole topic is about, I don't know if people are commenting without reading but its not a coin, it is not even a token. It is just blockchain system that is built to transfer money around easily.

I mean it is great way to utilize blockchain and I kind of understand why, not like they were sending money in big money trucks before but now we at least know that blockchain is much better technology than whatever other digital system they used until now.

IT department probably came up with this and they showed how it would be cheaper and easier to transfer money around and gave a projection of how much they could save and considering it is insanely cheap it was some big number so the head of the company realized they could profit from this move and gave the green light.

An IT specialist must have invested Bitcoin.
The atrocity called "JPcoin" was invested from a marketing department most likely! That shouldn't even be called a cryptocurrency.