JPM Coin is the first ever bank-backed cryptocurrency launched by JP Morgan. This is one of the most significant developments in the world of cryptocurrencies in quite some time. Considering the fact that JP Morgan is among the biggest names in finance, their endorsement of the crypto-tech can potentially help revive the markets.
However, is this JPM Coin launched by JP Morgan a threat to Bitcoin ($BTC) and Ripple ($XRP)? Let us take a closer look and find out.
What is the JPM Coin Cryptocurrency?
The currency is basically a stablecoin from JP Morgan. The value of one JPM Coin will always be one US Dollar. This is because JPM Coins will be pegged to USD like other stablecoins such as Tether and USDC. However, this JP Morgan-backed cryptocurrency is only for the institutional clients of the company and not for general use at the moment.
JP Morgan pointed out that by using JPM Coin, their clients would be able to transfer money at a much faster rate. It is still under trial and a pilot project will be tried out between a few of their clients. The currency is based on Quorum, which is JP Morgan’s proprietory blockchain platform.
Is JPM Coin a Threat to Bitcoin or Ripple?
While many have pointed out that a bank-backed cryptocurrency might risk the dominance of Ripple and Bitcoin in the markets – this may not be the case. A number of crypto-experts have voiced their displeasure. Considering that this coin is a bank-backed currency, it is highly centralized. Centralization is against the idea of creating cryptocurrencies.
Hence, it appears that there is no real danger to Bitcoin or Ripple – as most in the industry aren’t even calling the JPM coin a real cryptocurrency.
Source: JP Morgan, Cointelegraph, newsBTC