JPMorgan’s digital coin JPM Coin is officially used for the first time commercially this week, as we are reading more in today’s cryptocurrency news.
The JPM Coin is officially used for the first time by a large technology client to send payments across the world. The bank has set up Onyx, an umbrella organization for the blockchain and digital currency initiatives and JPMorgan is now using its coin for the first time commercially. It is being used by large technology clients to make payments globally according to the global head of wholesale payments Takis Goergakopoulos.
The large technology client remained unnamed but more clients are reportedly being on-boarded now. these developers gave the international bank confidence that the future lies in blockchain technology. The company also launched Onyx which is an umbrella organization for digital currency initiatives. With more than 100 employees, it’s described by Jamie Dimon who is the CEO of the bank as the “Forefront of a major shift in the financial services industry.” Dimon added that this only “reflects the commitment of the bank to innovation as we continue to build cutting-edge technology which delivers a better, faster, and more inclusive financial system.”
JPM Coin is a stablecoin that represents the US dollars held in the bank’s accounts but in other words, its value is tied to that of the US dollar. It was created and tested by the bank in 2019 and is described by Umar Farooq who is the head of digital treasury services and blockchain as a coin that is designed to make instantaneous payments using blockchain. Another potential use case for the coin is cross-border payments. JPMorgan moves more than $6 trillion in one day in about 100 countries, could enter an era where blockchain technology allows banks to confirm international payments in a cost-effective way.
Blockchain technology will provide a solution for the painful costs that happen when the banks suffer errors in processing payments from one country to another. The blockchain can help the bank cut costs in processing checks and according to Georgakopoulos, using a version of the blockchain with the participants being the main issuers of lockboxes, it is possible to save up to 75% of the total cost for the industry today.
After the major investments in BTC from major companies like Square and Microstrategy, JPMorgan could give more boosts in into the mainstream. Blockchain technology and the crypto industry received another major boost as PayPal announced it is launching buying and selling features for crypto.
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