Well-known investment bank JP Morgan launched its own cryptocurrency, JPM Coin, a little over a year ago. Its new subsidiary Onyx is responsible for the development and marketing of its blockchain solution. The goal is to create a stable cryptocurrency also called stablecoin which would be backed by the dollar. It had been tested then, now the time has come for its marketing. An international tech company would have been the first to use it; his name has not been released. Who will be the actors who will benefit from it? And what benefits will they reap?
An ultra private service operating on the PoA (Proof of Authority).
The PoA is a consensus where decisions are made by a handful of people whose identities are known to all. Translation, proof of authority, makes perfect sense. This centralization ensures security of their system. Development has been done on the Quorum blockchain which is a version of Ethereum (ETH) private license. Quorum, which by the way was recently bought by ConsenSys. You and me could not consult the transactions that take place within the latter. Anybody, can not benefit from the JPM Coin. Only companies that already have committed funds at JP Morgan can benefit from this service.
Better, Faster and Cheaper
What JP Morgan offers us with the JPM Coin is An innovation that we can call disruptive. When we want to send money around the world, we all know it can take some time. In addition, the costs that are incurred often go beyond reason. JPM Coin solves all these problems, indeed it allows transactions almost instantaneous but also minimal fees. What to save miles and cents to multinationals who will use this service.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Dimon, the CEO of JP Morgan in 2017 spoke of Bitcoin as follows: ” This currency is not going to work. We can’t have a system where people create money with wind and think that the people who buy it are really smart “. Today he uses this same technology to develop his business. Even more, he leads the way in the democratization of blockchain and cryptocurrencies. Echoing Paypal’s recent announcement, the expansion of cryptocurrencies seems to be off to a good start !
A musician at heart, the discovery of the blockchain resonated like a melody in me. Today I am trying to disseminate this wonderful technology to as many people as possible, which will affect the world of tomorrow on many levels. If you have any comments or questions, do not hesitate to contact me on my Linkedin!