Speaking at annual investor day, JP Morgan Chase’s Jamie Dimon said that the bank’s digital currency could be used for retail payments one day.
A Bank-issued Crypto for People?
The 62-year-old executive said, During a question-and-answer session:
“JP Morgan Coin could be internal, could be commercial, it could one day be a consumer”
His comments are speculative in nature, and the bank’s website says nothing about its plans to offer JPM Coin access to individual users.
JP Morgan is the first major banking institution in the US to create its own cryptocurrency. Dubbed the JPM Coin, the new digital token is designed to settle transactions between wholesale payments business clients of the banks. This is specifically designed for securities transactions and international payments that migrate to the blockchain.
Dimon Changes His Views on Crypto
While Dimon is predicting retail use of JPM Coin right now, he was one of the most vocal critics of Bitcoin. He went as far ahead as saying that the world’s premier digital currency is a “fraud” while Bitcoin was climbing its way to $20,000. However, he maintained his positive stance on blockchain technology.
JPM Coin is being trialed with the corporate clients of the bank itself. However, Bitcoin is an open-sourced network that can be accessed by anyone in the world. It maintains a public pseudonymous ledger that contains details of all transactions on the blockchain.
Whenever JPM Coin makes a formal debut, it would be one of the first formal real-world applications of blockchain and cryptocurrencies by a major bank. JPM Coin is pegged against the US Dollar 1:1, which means that each coin is redeemable for 1 US Dollar. Clients will be issued the coins after depositing dollars at the bank. The coins are destroyed after the transaction is complete after which the bank returns the dollars to the clients.