Despite CEO Jamie Dimon labelling Bitcoin a fraud, JP Morgan, the largest bank in the US, has announced it has created and successfully tested its JPM Coin cryptocurrency this month. It marked an unprecedented move for a major US bank.
The bank said its digital currency, called “JPM Coin,” is based on blockchain technology and is intended to enable the “instantaneous transfer of payments between institutional accounts.”
JPMorgan says each JPM Coin is tied to the US dollar fiat currency and has a value equivalent to one US dollar. Digital currencies tied to fiat currencies are known as stable coins.
“When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of US dollars, reducing the typical settlement time,” comments Umar Farooq, head of Digital Treasury Services and Blockchain.
Jamie Dimon, the bank’s CEO, said in late 2017 that bitcoin, the worlds largest cryptocurrency, was a fraud. Shortly after he said that he regretted the comments, but said he still wasn’t interested in bitcoin itself.
“We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated,” says a statement from the bank.
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