JPM Coin, a crypto with a future – After comparing gold to Bitcoin, JP Morgan is talking about her again. The American firm has indeed praised the effectiveness of JPM Coin, already used by large companies. This announcement represents yet another positive signal for the entire blockchain industry.
JPM Coin, the private stablecoin
JPM Coin is a stablecoin , the value of which is modeled on the US dollar. This technology has been tested since February 2019 and will aim to make instant payments through the sacrosanct blockchain ( private , don’t worry).
JP Morgan is one of the biggest players in the industry. It effectively moves over $ 6 trillion a day across 100 countries. The current monetary network is based on several channels , including SWIFT and SEPA in Europe.
On its website, Crypto Engine claims ease of use for its new stablecoin:
A JPM client makes a dollar deposit into his account and converts this money into a token;
These tokens can easily be transferred, through the blockchain, and as part of a corporate action, for example
The recipient receives the sum in JPM Coin and, in turn, converts the digital currency into dollars.
Onyx, the emergence of a new actor.
To carry out this project, JP Morgan will be helped by Onyx , a new branch of its group which will arbitrate and manage the blockchain on which the JPM Coin will be based.
According to Umar Farooq, CEO of Onyx, banks could charge a few cents to confirm the data of each transaction. This would save money, correcting errors, and creating a model for making money by participating in the network.
Takis Georgakopoulos, Head of International Operations at Onyx, says JPM Coin is already used by „a large international and technology company“ , without specifying its name. In addition, other customers are said to be already adopting the technology.