JPMorgan Chase is developing its own cryptocurrency – JPM Coin – according to a CNBC report published on February 14. In doing so, JPMorgan becomes the first major U.S. bank to officially enter the crypto sphere.
The stablecoin will be worth US$1 and act as a means of settling payments on the bank’s blockchain. Its main function will be to enable instant transactions that could eventually replace outdated systems like SWIFT.
Umar Farooq, head of JPMorgan’s blockchain team, told CNBC that JPM Coin could allow large multinational clients to “consolidate their money and probably get better rates for it.”
Mixed reactions from the crypto world
Unsurprisingly, many crypto enthusiasts aren’t happy about one of the world’s biggest banks entering the crypto world. Craig Wright was one of the first big names to react to JPM Coin, releasing a combative tweet on the topic:
Oh, you did not check?
I have patents on what you want to do.
Have a nice life.
— Dr Craig S Wright (@ProfFaustus) February 14, 2019
Binance CEO Changpeng Zhao, on the other hand, appeared much more positive about JPMorgan’s move:
First they …, then they …, then they…, then you win!
Welcome to the real world, JPM! https://t.co/RH7LwWPCSi
— CZ Binance (@cz_binance) February 14, 2019
The news could come as a blow to Ripple (XRP), which has a very similar use case to the proposed JPM Coin.
Jamie Dimon completes his backflip
Of course, JPMorgan’s vision of an in-house stablecoin differs greatly from the decentralized Bitcoin network Dimon criticized.
According the CNBC report, JPMorgan will begin trials of JPM Coin “in a few months.”