JP Morgan becomes the first bank to roll out cryptocurrency in the banking industry. It becomes the first major bank that will create cryptocurrency.
JP Morgan makes a daily transaction of more or less $ 6 trillion on a daily basis all over the world. This transaction is for corporations in the business of wholesale payments.
JP Morgan’s Cryptocurrency: Trial session
The trial of the transactions via cryptocurrency will start in just a few months. This trial session of cryptocurrency will incorporate only a very small fraction of the daily transaction of JP Morgan.
The cryptocurrency named JPM Coin will be used for carrying out these transactions of JP Morgan. The JPM Coins will be used to settle the payments instantly between the clients.
JP Morgan is now planning to move to blockchain mode. It will be for transfers that involve cross border payments to corporate debt issuance.
Blockchain is the future of all such transfer modes which was started by Bitcoin. JP Morgan needed a faster mode for attaining this future. This could not be fulfilled by old technology like wire transfers.
When the testing of the international payments will begin, it will be the first real-world application of cryptocurrency in the world.
It was only last year when JP Morgan along with other two other banks had banned the purchase of bitcoins by their credit card customers. Even Goldman Sachs had recently kept aside the plans of creating a trading desk of bitcoin.
The cryptocurrency of JP Morgan, JPM Coins will be used by only big institutional clients who include corporations, banks as well as broker-dealers. It will not be used by retail investors.
Source: Eth News
JPM Cryptocurrency will bring in real time settlement
As of now, the international payments, typically of big corporate clients use SWIFT which takes more than a day to settle. By bringing in blockchain into such transfers, the payments of JP Morgan will settle in real time. It will not be time bound.
Bringing in cryptocurrency into the banking system will also ease the securities transactions. Cryptocurrency “JPM Coins” of JP Morgan will contract the time gap that exists in the securities transaction. This gap exists in settling the transaction and the payment being made.
The introduction of cryptocurrency will also act as a replacement of the dollar that is held by JP Morgan in subsidiaries across the world.
