JPMorgan creates JPM Coin

In doing so, it became the first bank in the U.S to have its own cryptocurrency.

Did you like the news you just read? In other words, a JPM Coin should always be valued at precisely $1, and should not increase or decrease in value as is the case for other coins in the crypto space. Although, still an agenda for the future, it will be a major milestone in the bank's plan for a worldwide crypto dominance.

J.P Morgan is betting that its first-mover status and large market share in corporate payments - it banks 80 percent of the companies in the Fortune 500 - will give its technology a good chance of getting adopted, even if other banks create their own coins.

However, it's not all doom and gloom, the creation of the bank backed digital currency, especially from a bank as notable as JPM is actually a very positive one. Thus, the bank will have a stranglehold on its supply, who uses it and how it's used. The recipient of JPM Coins would then exchange them for fiat currency. Ripple uses cryptocurrency called XRP, now third biggest cryptocurrency with a market cap of $12bn. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.

Ripple may have enrolled 100 banks on its platforms, but in JP Morgan, it has a formidable competitor. JPM move around $6 trillion around the world every single day, this is a big deal... Even a fraction of these would be miles ahead of the amount transacted on Ripple's network. It appears unlikely that another centralized stablecoin will do much damage to Ripple in the short term but the banks are likely to continue developing their own in house solutions rather than working with third parties which is a bit of a slap for Ripple.

Ripple revealed that backwards compatibility is not planned, and this means that those who have not updated the XRP Ledger version will lose a few benefits of 1.2.0. Travis Kling, the founder of Ikigai Asset Management also believes that Ripple Labs should be very anxious.

What are your thoughts on Brad Garlinghouse's comments that bank issued cryptocurrencies are still not the answer? This time delay is caused by the fact that all banks in the USA use the same clearinghouses for ACH (automatic clearing house) transactions, which is the Federal Reserve or EPN.

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post.

The US-based multinational lender's announcement today which came as a surprise to many.

JPMorgan is making moves targeted at cementing its stance as a force to reckon with in the emerging digital asset market.

According to Jerry Brito, executive director at Coin Center, a nonprofit research and advocacy center focused on cryptocurrency and decentralized technology, the USA banking behemoth did not actually launch a cryptocurrency but more an in-house-built payments system. While it's not everything the crypto world would have wanted, at least a banking giant has recognized that the future belongs to digital currencies.

  • Eleanor Harrison