JP Morgan Chase has announced that it will be launching and rolling out a trial version of cryptocurrency known as the JPM coin. It would be used by big businesses in the initial stage, specifically the big clients of the company. Moreover, the cryptocurrency will be backed by the major United States based Bank. The main purpose of this cryptocurrency will be related to the settlement of payments between two clients instantly. JPM coin is initially going to be only for the big hands and not the average ones.
The coin would be used by big clients only, during the initial stage and those clients who have passed the regulatory sections. Hence, it will not be available for average customers. Besides, the coin can be exchanged for US dollars only and the price will be specified according to each dollar. Hence, you would find only the value of this coin in USD and not in all currencies, like the cryptocurrencies.
The head of JP Morgan Chase department confirmed that the coin would be available in exchange of dollars at any institution and the trade would be settled by reconverting the coin into the United States dollars. Moreover, it would be open for all those people who are affiliated with an institution of operation.
JPM Coin usage
The head of the blockchain at JP Morgan Chase explained that the JPM coin can be used in 3 ways. He claimed that the coin will help in both International payments and securities transactions. The coin would cut out the need for wired transactions. Hence, it would be easier for multinational companies to transfer a huge amount of money from one country to another without incurring a huge amount of fees. Moreover, the speed of this transaction would be required and settlement will take place as soon as the money is transferred. Therefore, the companies can save a lot of time by using this coin in place of a wired network.
Additionally, JPM coin can be used for securities transaction as well by the investor. Hence, there is no need to use Wire networks for transferring money is because this settlement process takes a lot of time. The transactions are completely safe and secure. The JPM coin is a significant bet by JP Morgan Chase. However, innovation seems promising and will help the company to further develop blockchain solutions in the long run. Moreover, the aim of JP Morgan Chase used to change the conventional treasury method of multinational companies.
Most companies hold the surplus fund in form of United State dollars. However, the company wants all the big cash companies to hold their cash in form of the latest cryptocurrency coin that they are going to launch soon.
