J.P. Morgan Chase & Co creates first US bank-backed cryptocurrency
An American multinational investment bank J.P. Morgan Chase & Co issued a statement on 14 February that they created their digital coin named JPM Coin. Bank’s digital coin is based on a blockchain technology and will serve the purpose of instantaneous transfer of payments between institutional accounts. JPM coin will represent fiat value of USD $1. Unlike other cryptocurrencies this coin will redeemable in fiat currency held by J.P. Morgan in a 1:1 ratio. J.P Morgan investment bank recognized the great potential of blockchain technology for financial institutions pointing out the future possible reducing clients settlement risks and enabling instant value transfer.
Mr. Umar Farooq, head of Digital Treasury Services and Blockchain for the J.P. Morgan told in an interview that: ‘JP Morgan is using blockchain because of the improvements in speeds and security that the technology offers’. Read the full statement from J. P. Morgan on the release of the JPM coin here