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.