Financial institute JP Morgan has become the very first major US bank to create its own cryptocurrency.
During the coming trails that shall begin within a few months, a small fraction of that will happen through the digital asset named “JPM Coin”, the cryptocurrency was created by engineers at the New York-based bank to instantly settle payments between clients.
JP Morgan is buckling down for the oncoming future in which parts of the essential underpinning go worldwide capitalism, from cross-border payment to corporate debt issuance, and transition to the blockchain. In order for them to succeed from the oncoming future that will surely happen, the bank needed a way to transfer their money at quicker speeds that those smart contracts finalized, rather than relying on the archaic technology such as wire transfers.
Head of J.P. Morgan’s blockchain projects, Umar Farooq, had this to say:
“So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction,” “The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.”
Most people will surely be surprised over JP Morgan’s new currency which comes from the unexpected development of a technology that came into existence due to the fear of the financial crisis getting worse, and set off to disrupt the old banking system.
Previously during 2016, four of the world’s largest banks had revealed their own set of plants to launch Utility Settlement Coin (USC), a cryptocurrency designed to streamline cross-border transactions, boosting speed and lowering fees. UBS introduced the idea alongside BNY Mellon, Deutsche Bank, and Santander. Furthermore, Barclays, CIBC, Credit Suisse, HSBC, MUFG, NEX, and State Street are currently on board. A testing phase was set to take place during the previous year, but some details on the coins development were sparsely revealed during the mid-2018.