May 14, 2020

J.P. Morgan Creates First US Bank Backed Cryptocurrency For Payments

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Once against Cryptocurrencies, America’s biggest financial firm has suddenly changed their tune.

J.P. Morgan will soon roll out the worlds first bank backed cryptocurrency in order to transform the payment industry, instantly settling transactions between businesses globally.

The lender currently moves more than $6 trillion around the world every single day for global corporations.

The digital token created by engineers, named JPM Coin, will start its trial phase in a few months time. Accounts have already been opened to Gemini and Coinbase, two of the world’s largest cryptocurrency exchange platforms. J.P. Morgan will provide these two companies with deposit, withdrawal and transferring services utilising Automated Clearing House (ACH) infrastructure.

This is a great step forward for the crypto space; previously it has been very difficult for cryptocurrency exchanges to secure a trustworthy and reliable banking relationship. This is bound to open up better banking relationships on the whole for Bitcoin companies.

Umar Farooq, head of J.P. Morgan’s Blockchain projects commented;

“So anything that currently exists in the world, as that moves onto the Blockchain, this would be the payment leg for the transaction. The applications are frankly quite endless; anything where you have a distributed ledger which involved corporations or institutions can use this.”

This latest announcement from J.P. Morgan presents a large amount of credibility for the crypto space, and is great news for crypto miners, as they can now expect a greater amount of transactions on the blockchain.

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