After PayPal announced its decision to enter the crypto sector early next year, bitcoin (BTC) continued to perform well and hovered around $ 13,500 for about a week. In this regard, the payment giant’s entry into the cryptocurrency market has been called a watershed moment, especially when it comes to improving the popular perception of the digital asset industry as a whole.
Not only that, JPMorgan Chase announced that an initial digital coin offering – JPM Coin – has finally been rolled out for regular use by one of the company’s technical staff. The token is designed to facilitate various JPMorgan Chase cross-border money transactions.
JPM’s assets can be traced back to early 2019, when the banking giant announced plans to issue a dollar-backed cryptocurrency that would eventually be used to process its domestic and international transfers. Now it seems that JP Morgan has finally delivered on its promise to create a solution that could save the global financial industry hundreds of millions of dollars in additional costs such as processing costs, high taxes and fees.
JPMorgan is currently one of the world’s largest payment systems, and the company is reportedly poised to transfer over $ 6 trillion in remittances every day to over 100 countries. Brian Belendorf, CEO of Hyperledger, an enterprise blockchain system, told Cointelegraph that he estimates the move is unlikely to have a significant impact on the market, especially since JPMorgan’s payment network is closed to those who disagree. with this. With them:
“Consumers will most likely not be aware of this – fees for transferring money between accounts or other types of transactions, etc. may be reduced. Professional investors may notice that they have new types of assets available in their portfolios in the form of these combinations of coins. ., But this is not so much an “investment” as a more convenient way to move money. ”
However, Belendorf acknowledged that the move pretty much represents an additional step to the usual adoption of cryptocurrencies and technologies that are now ready for industrial use in real time.
With the centralized deployment of tokens, there is a reason why blockchain technology is finally ready to generate serious revenue for users. Paul Brody, head of global innovation and blockchain technology pioneer at Ernst & Young, told Cointelegraph that while people may be just starting to grasp the economic potential of the technology, blockchain has quietly brought significant benefits to many companies in recent years. …
In addition, Brody believes that secure payments to business users from large brand banks will have a positive impact on the market as a whole, because most of the work done on the network is still in development, but the payment has not yet been completed. Moreover, the inclusion of the JPM coin could help “more companies become comfortable with the idea of closing the loop and starting a full-fledged business operation in the chain.” he added:
Until recently, there was little competition in the global market for cross-border payments, so I think that the addition of new players, regardless of technology, will have a positive effect. What’s very important is that if you can make payments part of a fully digital business contract, you can reduce the cost of doing a business transaction abroad, which is very revolutionary.
Belendorf also noted that private commercial tokens similar to JPM coins have been produced for several years, mainly as settlement mechanisms for trade finance. Not only that, it was mentioned that it is also being performed in other banking, equity and bond markets in Asia and Europe: “The United States. Business blockchain networks also create commercial value in other ways, from supply chain traceability to KYC, regulatory compliance, and more, even IIN JPM. ”
JPMorgan sets up its own set of blockchains
In a recent interview, the head of global wholesale payments at JP Morgan said that the launch of JPM Coin and several other currencies behind the scenes prompted the banking giant to create a new business piece of equipment called Onyx. This division will allow the company to focus on its current blockchain and digital currency efforts.
Onyx is said to have over 100 employees and was created with the goal of marketing various blockchain and crypto projects planned for JP Morgan, to move current ideas from the research and development stage to something more tangible.
When asked about their future plans and whether cryptocurrencies fundamentally affect the company’s future scheme, JP Morgan’s media relations representative told Cointelegr.