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JP Morgan is rolling out the first cryptocurrency by a US bank to transform payments business

JP Morgan is rolling out the first cryptocurrency by a US bank to transform payments business

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  • Skepticism in Bitcoin is not the same as skepticism in crypto or blockchain, and we’re all well served to remember that distinction. Blockchain is a tool, like every technology. It’s one with massive long-term potential, but it’s already helping businesses solve real-world problems today, and JPM clearly

    Skepticism in Bitcoin is not the same as skepticism in crypto or blockchain, and we’re all well served to remember that distinction. Blockchain is a tool, like every technology. It’s one with massive long-term potential, but it’s already helping businesses solve real-world problems today, and JPM clearly sees that opportunity. We’ve been testing blockchain in our own treasury operations at Microsoft, and many of our customers are experimenting in similar ways. I expect to see more announcements like this in 2019.

  • It’s ironic that the institutions that people so distrust that they created alternate currencies instead (crypto) are now profiting from the lack of trust. If anything call kill crypto, this is it.

  • JP with its vocal detractor at the helm seemed an unlikely first mover, but it's not a surprise to see large institutions adopting crypto currency. There are huge potential upsides to improving efficiency for international movement of money between currencies.

    Ripple (xrp) has been developing relationships

    JP with its vocal detractor at the helm seemed an unlikely first mover, but it's not a surprise to see large institutions adopting crypto currency. There are huge potential upsides to improving efficiency for international movement of money between currencies.

    Ripple (xrp) has been developing relationships with banks internationally for years with this sales pitch.

    I imagine this can only have positive long term effects for crypto currency as an asset class because it will help improve trust of the technology more broadly in the market. It also stands to reason that JP may want to benefit from retail interest. A "stable" US dollar-based token backed by a major institution may seem antithetical to the etho of crypto, but could also provide a less volatile store of money for traders.

  • And here we go...crypto not seeming so crazy when Jamie’s doing it.

  • About time. Legacy wire transfers finally getting a much-needed facelift. Instant settlements are here!

  • While JP Morgan is the first US bank to issue a blockchain-based digital coin, it is not the first time large financial institutions have used an enterprise implementation of the Ethereum blockchain to tokenize fiat currency. In 2016 ConsenSys and JP Morgan supported Project Ubin, a collaborative industry

    While JP Morgan is the first US bank to issue a blockchain-based digital coin, it is not the first time large financial institutions have used an enterprise implementation of the Ethereum blockchain to tokenize fiat currency. In 2016 ConsenSys and JP Morgan supported Project Ubin, a collaborative industry project in which the Monetary Authority of Singapore and 11 institutional banks prototyped a real-time gross settlement solution using a Quorum network of the Ethereum blockchain. ConsenSys also partnered with the South African Reserve Bank (SARB) to process the typical daily volume of payments between SARB and seven commerical banks with full confidentiality and finality in less than two hours.

    Interoperability is next and I expect more firms to realize the benefits of using a private Ethereum derived blockchain with the goal of eventually connecting to the Ethereum mainnet.

  • It's laughable that people say they don't trust traditional banks when a large number of cryptocurrency-based ICOs or even the "mainstream" cryptocurrencies are either fraudulent or so shady their value is suspect. Blockchain needs to have its scaling and power issues solved and consumers will eventually

    It's laughable that people say they don't trust traditional banks when a large number of cryptocurrency-based ICOs or even the "mainstream" cryptocurrencies are either fraudulent or so shady their value is suspect. Blockchain needs to have its scaling and power issues solved and consumers will eventually benefit, but by being adopted by a relatively regulated industry, it's better than the Wild West alternative.

  • From different possible applications, remittance corridors will most likely be affected first by traditional bank cryptocurrencies, shifting from the Western Unions and even popular P2P apps such as Tuyyo (which not surprisingly is owned by BBVA).

    It’s ironic that the bitcoin developers community that

    From different possible applications, remittance corridors will most likely be affected first by traditional bank cryptocurrencies, shifting from the Western Unions and even popular P2P apps such as Tuyyo (which not surprisingly is owned by BBVA).

    It’s ironic that the bitcoin developers community that created the blockchain, gained momentum after 2010 as a protest to the traditional banking system role in the 2007-2008 crisis.

    Now, traditional banks are helping legitimize digital currencies and help mass adoption.

  • Maybe I am naive but this is no different from prepaid balance. You can do it on Paypal right now and you can do that with Bank of America between accounts. All money is already digitized. Crypto is a technology looking for a problem.

  • This is crypto as an instrument of instantiating the blockchain. This is not crypto as an asset class that holds intrinsic value.

    It gets interesting when JPMC decides to issue tokens for these “verified” entities against credit, and then it becomes a fiat currency with no convertibility - a bank note

    This is crypto as an instrument of instantiating the blockchain. This is not crypto as an asset class that holds intrinsic value.

    It gets interesting when JPMC decides to issue tokens for these “verified” entities against credit, and then it becomes a fiat currency with no convertibility - a bank note that doesn’t circulate...

  • It is the E-coin from evil Corp as shown in mr. Robot shit just got real

  • "I could care less what bitcoin trades for, how it trades, why it trades, who trades it. If you're stupid enough to buy it, you'll pay the price for it one day. - Jamie Dimon, (October 3, 2017)

    His issue was with it being a non-fiat coin (see here: https://www.cnbc.com/2017/10/13/jamie-dimon-says-people-who-buy-bitcoin-are-stupid.html

    "I could care less what bitcoin trades for, how it trades, why it trades, who trades it. If you're stupid enough to buy it, you'll pay the price for it one day. - Jamie Dimon, (October 3, 2017)

    His issue was with it being a non-fiat coin (see here: https://www.cnbc.com/2017/10/13/jamie-dimon-says-people-who-buy-bitcoin-are-stupid.html) but he was upbeat about the prospects of applying blockchain to improve settlement/back office work for institutional clients, an area operates in days and costs millions. Will be interesting to watch this develop.

  • JPM Coin is private, permissioned and centralized. Remind me again why it needs to use blockchain?

    https://www.mckinsey.com/industries/financial-services/our-insights/blockchains-occam-problem

  • It is interesting how much control the banks have. Bitcoin was bad but all of a sudden Jamie’s coin is legal and golden.

  • This isn't a cryptocurrency. This is just an unnecessarily convoluted way of transferring funds from one internal account to another. And there's nothing revolutionary about that, heck, my little credit union offers instantaneous transfers to other members' accounts.

  • For those interested in the history of the Jamie Dimon-Bitcoin beef: https://www.marketwatch.com/story/jamie-dimon-i-dont-really-give-a-shit-about-bitcoin-2018-10-31

    I actually think this is a move consistent to what Dimon has said before — the JP Coin is stable in value and is used as a tool to make

    For those interested in the history of the Jamie Dimon-Bitcoin beef: https://www.marketwatch.com/story/jamie-dimon-i-dont-really-give-a-shit-about-bitcoin-2018-10-31

    I actually think this is a move consistent to what Dimon has said before — the JP Coin is stable in value and is used as a tool to make transactions occur faster. Meanwhile, Dimon has been a detractor of Bitcoin as a currency that trades like a penny stock (similar percentage moves but with much crazier value fluctuations).

  • Interesting to see J. P. Morgan enter the crypto space given their outspoken position regarding such offerings - perhaps their objection was on the speculative nature of bitcoin. That being said, it is nice to see J. P. Morgan using blockchain to push banking into the 21st Century.

    #jpm #crypto #blockchain #banking #brand

  • This may not be the crypto product that becomes mainstream, but this does legitimise it. I’m still undecided as to whether that’s good or bad. The technology is too tainted by bad actors and vapourware to sort signal from noise.

  • Great to see use cases of blockchain, moving away from hype.

  • The main issue here is its not trust less and decentralized, which are the two main attractions to bitcoin based ledger systems. There is nothing that prevents or makes the entire flow transparent and public.

  • Be interesting to see if they are indeed all in on this or if they will suffocate the currency with regulation to hedge against risk and only make it available for select financial products.

  • I think this is interesting move by JP Morgan, but it does not necessarily provide anything of value. Blockchain is the future, but is this move solving anything? Perhaps this is the first indicator of bigger things to come.

  • This has interesting implications concerning the end stages of capitalism. Please, go on...

  • I wonder if they are exchangeable with actual Bitcoins

  • So they're poisoning the well.

  • Cryptocurrency was the rage in the past but got badmouthed and it tanked. Now the "big boys" are getting into it (read: monopolize) now that they've scared all the small players out. It will be interesting to watch and figure out how "the small guy" can work their way into this one-world currency monster.

  • NOW you can track and prove you own shitty frauded derivatives have private keys, the keys are worth more than the agents minty breath. If they are legit then crypto will become more popular.

  • Before you know it, the national currency will be operating on par with your local post office branch....

  • The headline is a bit a misnomer in my view. Cryptocurrency is something that runs without a third party, like a bank in this case. What they have is a logically centralized token. This will yield operational and cost efficiencies commonly found with enterprise Ethereum blockchain implementation.

  • Sounds like a database. If it’s controlled by a bank how can it be a real blockchain?