Few days back we did hear that JP Morgan introduced its digital currency ‘JPM Coin’ now it has made it clear that it is a ‘stable coin’ and not a cryptocurrency coin. The ‘JPM Coin’ is still in a testing phase currently.
The launch of this coin for the first time by one of the largest bank of U.S. has marked itself as cryptocurrency inspired asset. This coin was built to make transactions faster, payments secure between the institutions using blockchain.
The mainstream media is calling the ‘JPM Coin’ as cryptocurrency whereas the experts are not in support of it. Jerry Brito, executive director of a research organisation Coin Center, says
“I see folks referring to it as a cryptocurrency – it’s not a cryptocurrency.” Adding to this he says,
“A cryptocurrency is one that is open and permission-less, if you want to download it, you don’t need permission; you just need some software” whereas the JPM Coin will be “closed and permission ed”
JPM Coins are similar to cryptocurrencies just like others tied to the value of money, but less useful. It moves within the perimeters of JP Morgan.
Umar Farooq, JP Morgan’s head of digital treasury services and blockchain says,
“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.” But is JPM Coin a cryptocurrency?
The launch of the coins was basically a firm decision taken by JP Morgan to meet its customer’s demands to fulfill the secure and instant payment processing platform according to him.