According to Bloomberg, JPM Coin, the digital currency developed by JPMorgan Chase, will start trial operation as early as this year.
JP Morgan Chase recently disclosed the project, which is an important project centered on the international settlement field. As a digital currency for instant settlement, the model is similar to virtual currency using DLT technology. JPMorgan Chase initially disclosed its target customers to its main customers, and according to the latest reports, customers in countries other than Europe, the United States and Japan also showed interest in the project. Although JP Morgan Chase disclosed the possibility of commissioning JPM Coin, it is reported that there are still some obstacles in terms of relevant regulations.
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What is Morgan Coin?
JPM Coin is a digital currency based on blockchain distribution that aims to enable instant payment using blockchain technology. JPM Coin can be used by different parties to exchange value (such as currency) on the blockchain.
In fact, JPM Coin itself is not a legal currency, but a digital currency that anchors the dollar. In the designated account, JP Morgan Chase stores the corresponding US dollar. In short, the value of a JPM Coin is equivalent to $1. When a customer transfers money to another customer through the blockchain, JPM Coin will transfer and immediately convert to the equivalent dollar, which will shorten the settlement time.
Of course, JPM Coin is currently a prototype product, which is currently only tested by a few JP Morgan Chase customers, which means that only JPMorgan Chase's large institutional clients, such as companies, banks and broker-dealers, can use this. Digital coins, individuals are currently not eligible to use JPM Coin.
JPMorgan Chase is not the first financial company to eat crabs
JPMorgan Chase is the first large bank in the United States to announce the official issuance of digital currency. Many people in the industry predict that more banks will actively follow up, thus opening the first year of the blockchain and institutions adopting the blockchain.
In fact, JPMorgan Chase is not the first crab-eater in the blockchain of global financial companies. As early as four years ago, Citibank announced that it would launch its own "Citico Coin", and Citigroup also created a "bitcoin-like" technology project in its own innovation lab. At the same time, Mitsubishi UFJ Financial Group, Japan's largest financial company, also announced the development and experimentation of a digital currency called “Mufg Coin”, and the group's employees can now use Mufg coins in an internal convenience store; in addition, Japan III Mizuho Financial Group, one of the big banks, teamed up with Japan Post Bank to launch a blockchain project called “J-Coin”, which will launch its own digital currency in March this year. According to preliminary statistics, at least 60 banking and financial institutions around the world are involved in the blockchain to varying degrees and consider issuing their own digital currency.
In China, the six major state-owned banks (ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, China Postal Savings Bank, Bank of Communications) began testing the blockchain several years ago, and the block of Bank of China. Chain deployment involves the widest range, and its application scenarios reach digital wallets, trade finance, housing leasing, public welfare, cross-border payments and digital bills. In addition, the “Guangdong-Hong Kong-Macau-Australia Trade Finance Blockchain Platform”, which was established by the Central Bank Digital Money Research Institute and the Shenzhen Financial Science and Technology Research Institute in conjunction with domestic and foreign financial institutions, was officially launched in Shenzhen a few months ago.
The impact of Morgan currency on digital currency
Although JPM Coin anchors the US dollar at 1:1, it is similar to the Tether stable currency on the market today, but the difference is still relatively large. The stable currency on the market can be used for all users, and can exchange the French currency export and import of Bitcoin digital currency. However, JPM Coin is only for JP Morgan Chase banking users, and the business involved is also in the bank itself. In other words, there is no direct funding or user for cryptocurrencies such as Bitcoin.
However, in the long run, JP Morgan Chase's release of JPM Coin is important for digital currency penetration, international financial system innovation, and global crypto economy construction. The current decentralized digital currency and stable currency, with a peer-to-peer transmission and trading system, and a global network of exchanges, form a global free financial market, which has a certain impact on the traditional financial system. Morgan's contempt for participation in cryptocurrencies indicates that the traditional financial system has attached great importance to this cryptographic revolution. The entry of digital coins by traditional large financial institutions gives warnings and is conducive to the spread of digital currency.
Source: Shallot blockchain