Bank titan JP Morgan Chase has finally launched its new stablecoin JPM Coin. It’s already active and used by the company to process cross-border payments. Despite conflicting comments from its CEO Jamie Dimon on crypto, the financial giant has shown tremendous interest in blockchain technology and cryptocurrencies. Well lo and behold. The JPM coin has officially arrived.
This means that the research, development and testing phase has ended and the project is now turning into real business. The currency will try to move in the area of cross-border payments. In this way, the bank could save costs and reduce the complexity of its processes. Of course, the currency is apparently only an instrument for internal use. According to the bank’s spokesmen, the currency should operate in a network of at least 400 banks.
Read on: JPMorgan is finally launching its stable coin called JPM Coin
This stablecoin isn’t JP Morgan’s only blockchain initiative. In fact, they currently have a team of more than 100 people dedicated to the region. Ein Umar Faroop is responsible for finding and developing solutions using blockchain technology.
The arrival of JPM Coin has followed the arrival of PayPal. And that’s on top of the investments made by Paul Tudor Jones, Square and MicroStrategy. More than the meaning of each of these messages in particular, the symbolic power of all of these messages put together in the midst of a pandemic has done much to foster a climate of optimism in the Bitcoin community.
A few years ago, JP Morgan Chase’s Jamie Dimon was viewed as a persona non grata within the crypto community due to his negative comments on Bitcoin. The crypto community with its wounded pride has blacklisted the issue. And conspiracy theorists began to justify Dimon’s position as a reaction from a man who is afraid of losing his job due to new technology that will supplant the banks.
Jamie Dimon himself says, after publicly criticizing Bitcoin, his son confessed to him: “Dad, I have Bitcoin.” He then received suggestions from his own staff. Due to public pressure, the bank began to investigate the issue further.
We need to remember that JP Morgan recently accepted Gemini and Coinbase as business clients to demonstrate their confidence in the industry. In other words, JP Morgan should no longer be on our blacklist. Indeed, the bank is one of our best friends. Jamie Dimon’s old comments on Bitcoin were simply the personal comments of an individual giving an uninformed opinion. Dimon is known for not knowing how to shut up. They asked him about bitcoin and he said the first thing that came to mind. Something perfectly valid.
But a bank doesn’t depend on a man’s opinion. JP Morgan Chase is an organization. You have employees, executives and managers. There are consultations, studies and plans. And here the most important thing is not to be right. Above all, the company must think about the good of the company. Only idiots don’t change their minds. Anyway, now JP Morgan is part of the crypto family.
Read on: JPMorgan now backs Bitcoin and names its “long-term bullish potential”
Of course, all of these advances are not being well received by everyone in the crypto community. There is never a shortage of decentralization puritans criticizing a project that is not 100% decentralized. For many of these radicals, banks are the enemy to be defeated. If Facebook shows interest in crypto, that’s a bad idea. If PayPal is interested, this is a bad idea. And if a bank does the same, that’s a bad idea too. In short, a ridiculous puritanism. It means imposing the binary vision of total decentralization or nothing.
In my humble opinion, variety is preferable to the paranoid and totalitarian world of the radicals with their cold wallets under the mattress. I think it’s great that Facebook, JP Morgan and others have their own cryptocurrencies. I also think it’s great that big banks have an interest in crypto and blockchain technology.
None of these “centralized” cryptocurrencies are actually no competition for Bitcoin. If anything, they are new forms of Fiat. They could perhaps be a competition for the other stable coins or for other forms of payment. But to be honest, I think this market is so broad that there is room for everyone. That is, for some things we use one option and for other things we use other options. JPM Coin could be one of the currencies used in interbank transfers. The scales (from Facebook) can be used for smaller business transactions within the Facebook network. PayPal or Facebook worth $ 30 do not pose a significant systemic risk to me. In other words, centralized systems don’t bother me. If a central system is useful to me, I use it. Point.
So what will the future of Ripple be? Could Ripple Compete With JP Morgan? JPM Coin is already part of a network of 400 banks. And it’s an option that is backed by one of the largest banks in the world. Ripple, on the other hand, is just a unicorn. Ripple is sure to find its niche. However, it is evident that they are no longer alone in the business of cross-border transactions.
Many say that the value of Bitcoin lies mainly in its code. But we need to remember that code is another substrate. Is the value of the dollar in the amount of paper and printing? Anyone can copy open source. But it is obvious that Bitcoin is much more than code. There are thousands of cryptocurrencies that use codes that are inspired by the Bitcoin code. JPM Coin has a code. And it is certainly very well developed. But bitcoin is still bitcoin. Bitcoin is a code, but also a set of tangible and intangible values that finally give it its value.
Read on: JPMorgan Says Bitcoin is slightly overvalued as a commodity
I firmly believe in diversity and variety. Decentralized projects have their uses. And centralized projects have their uses. Banks have their uses. Neobanks have their uses. And non-banking has its uses too. Radicals hold back innovations with their puritanism. Decentralized is positive. However, we cannot expect that centralized systems will disappear overnight and that the absolute hegemony of decentralization will be imposed on us. Welcome JPM Coin!
During this crisis, banks lost a lot of money due to failure. Despite JP Morgan Chase’s solvency, revenue this year has declined year over year. However, I very much doubt that this will mean the end of banks. This is not the beginning of the end for the trader. Fintech and crypto are not the end of banks. But on the contrary. Banks are being adopted. It’s not for nothing that JP Morgan has as many developers as one big tech. In time, we will realize that banks and big tech are not the enemy. The future is not a mortal struggle, but integration. All of this benefits Bitcoin.