18 Feb 2019
JPMorgan has announced the launch its digital coin representing a fiat currency. Called JMP Coin, the unit is based on blockchain-based technology and will enable the instant transfer of payments between institutional accounts.
Exchanging value, such as money, between different parties over a blockchain requires a digital currency.
“The JPM Coin isn’t money per se. It is a digital coin representing United States Dollars held in designated accounts at JPMorgan Chase N.A. In short, a JPM Coin always has a value equivalent to one U.S. dollar,” the lender explained.
“When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time.”
Over time, the bank expects its new crypto-asset to be extended to other major currencies. And although it is currently designed for business-to-business money movement flows, ‘the cost-savings and efficiency benefits would extend to the end customers of [its] institutional clients.’
Count this content towards your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet