Back in 2017, the CEO of JP Morgan Chase had some less than kind words to say about Bitcoin, calling it a fraud. Jamie Dimon later retracted his statement in 2018 and now, his company has announced a brand new cryptocurrency called JPM Coin. The coin will be used to instantly settle payments between banking clients in a similar vein to Ripple’s XRP.
The announcement is viewed as both positive and negative for the crypto space such as Bitcoin and XRP. Even though there are a lot of enthusiasts who are excited by the news, the impact that this will have in the future could change the industry as we know it.
The announcement of JP Morgan Chase releasing a cryptocurrency is quite shocking and it is the first cryptocurrency to be designed by a major US-based traditional banking firm. The JPM Coin will be used to facilitate near-instant transactions between the companies clients.
The banking giant is said to move more than $6 trillion across the world on a daily basis for its customers. There is only a portion of that which will be dedicated to a pilot test implementing JPM Coin and so to put things into perspective, two percent of JP Morgan’s $6 trillion in daily payments would be worth as much as the whole cryptocurrency ecosystem’s market cap.
There isn’t a doubt in our mind that the idea behind this announcement is huge, especially if the trials prove to be successful and JP Morgan utilises the JPM Coin across the whole business.
Following this unexpected announcement, the whole crypto industry blew up and responded with both confusion and excitement. There are many that are worried about how this will impact the industry whereas there are others that are buzzing about what JP Morgan’s stamp of approval on crypto as a whole might do for the market.