JPMorgan Chase Announces JPM Coin, Becomes First Big US Bank With Own Cryptocurrency (fortune.com)

J.P. Morgan Chase CEO Jamie Dimon called bitcoin a fraud in September 2017 and said, "You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart." By January 2018 he had walked the remarks back but said he still was "not interested that much in the subject at all." In February 2018, J.P. Morgan called cryptocurrencies "risk factors" to its business, something it never previously said. And now J.P. Morgan has become the first U.S. bank to offer its own cryptocurrency. From a report: But don't expect it to become an investment vehicle -- at least for now. The cryptocurrency, called "JPM Coin," is intended for the bank's wholesale payments business that moves $6 trillion around the world daily. As long-time former banker and now cryptocurrency industry figure Alan Silbert said of Dimon in a January 2018 tweet, "Backpedaling is the first step in the program towards walking the path."

Comments

Until they lose the password

[jfdavis668]

to the encrypted laptop that contains all the data.

Mr. Robot

[MightyYar]

I've seen this show.

Just a ledger method

[kalpol]

This sounds like it is just a ledger method to keep track of balance transfers within the business, so not really a currency at all.

Re:Just a ledger method

[timeOday]

If it is tied to the USD (fixed exchange rate), then I think so too.

Re:Just a ledger method

[AlanObject]

This. I am sure that JPM is going to tie the coins to a cash reserve (most likely US$) and there won't be any mining of new coins to create new "wealth." (Note the scare quotes they are significant.) JPM will control the coin supply the same as the Fed controls the US dollar supply.

This isn't Bitcoin. It is simply a new kind of open ledger using blockchains as kalpol said.

However it might still be worth doing. People will still be able to trade JPCoins around the world and they will be far more stable than any free-floating cryptocurrency. What will be significant is if the coin owners are permitted to remain anonymous or not. If they are then eventually JPM will run afoul of authorities who don't want JPMCoins to be used to bypass currency controls and doing illegal stuff. I can't imagine JPM going this way but they stand to make a fortune (more of a fortune) if they do just off of transaction fees.

Re: Just a ledger method

[mino310]

There are over 200 actual https://audacity.onl/ https://findmyiphone.onl/ https://origin.onl/ banks using Ripple right now. Ripple is owned by Santander bank.

Re:Just a ledger method

[JesseMcDonald]

Wealth is production, so if there's 10% more stuff we need 10% more currency

You don't need 10% more currency; you just need the currency, in aggregate, to become 10% more valuable. Which will happen automatically through price adjustments without any change in the supply.

Re:Just a ledger method

[Anonymous Coward]

To me it sounds like a way to avoid the transaction fees and reporting requirements of moving money around.

Re:Follow the coins

[ceoyoyo]

Either that or JPM has figured out the advantages to issuing their own currency, er, excuse me, crypto coins.

Question is which happens first: they lose interest or regulatory agencies gain interest.

Big deal!

[Locke2005]

I haven't yet found any strip clubs that accept cryptocurrency!

Re:Hope

[TeknoHog]

I hope it does not end up being a subprime cryptocurrency.

Unlike those real cryptocurrencies that use real primes for their cryptography.

Small fish in a big pond

[Thelaststraw]

When the big boys get involved in something, you know it's time to get out. They have the resources(bought politicians, computing power, brain power) to fleece everyone.