‘Bitcoin is a Fraud’
Jamie Dimon, CEO of JP Morgan, made his views on Cryptocurrency very clear last year as he called Bitcoin a “Scam” and took every opportunity he could to publicly play down the increasing hype surrounding Bitcoin technology (source).
Today JP Morgan have announced the release of JPM – a digital token designed to instantly settle transactions between clients of its wholesale payments business. A good way to think of this asset would be a JPM Stablecoin. It has been reported by CNBC that one of these tokens will be worth one U.S dollar.
This is the first Cryptocurrency created by a U.S Bank and represents a ground breaking moment in the movement of Blockchain technology.
The token will initially have three separate applications:
- International Payments – Large corporate clients will now be able to instantly settle transactions in real time representing a significant upgrade to the old SWIFT technology.
- Securities Transactions – Instant payments for issuances rather than using wire transfers.
- Treasury Services – Giant corporations can replace the dollars they use to hold subsidiaries with this token.
Umar Farooq, head of J.P. Morgan’s blockchain projects, said that ” Pretty much every big corporation is our client, and most of the major banks in the world are, too…..Even if this was limited to JPM clients at the institutional level, it shouldn’t hold us back.”
The Future of Digital Assets
An important distinction to make is that this asset has no correlation to Bitcoin, however what this does do is open the Overton Window – for example institutions moving huge amounts of money on new rails. This could mean that in the future there may very well be a space for a huge store of value being used as a settlement currency – i.e. Bitcoin
JP Morgan have just made the first big move by a U.S bank and as the banking industry is an oligopoly it’s almost certain that other giant banking corporations will follow suit.
More to follow..