JP Morgan Chase has said that it plans to roll out its own digital coins which will be termed as JPM Coin. The customers will be able to use the coins for a swift transfer of funds through a blockchain network.
The coins can be exchanged for US dollars to keep their value stable. If one client sends money to other over blockchain, JPM coins are transferred and quickly exchanged for an equal amount of US dollars.
What comes as a surprise is that the organisation’s CEO, Jamie Dimon previously ridiculed bitcoin, terming it as fraud in the year 2017. Dimon that time said cryptocurrencies are worse than tulip bulbs.
The bank has said on its website that JPM Coin was supportive of cryptocurrencies as long as they are properly regulated and controlled.
“As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators,” said Umar Farooq, Head of digital treasury services and blockchain, JP Morgan.
JPMorgan has also said that it trusts the potential of blockchain technology and is optimistic that its digital coin will have significant benefits for blockchain use by reducing client and settlement risk and offering quick value transfer.
In the year 2018, numerous US lenders like JP Morgan prohibited the purchase of bitcoins by customers using credit cards. Another banking giant, Goldman Sachs also discarded its plan for cryptocurrency trading.
JPMorgan says that its new coin will be rolled out utilizing its in-house blockchain technology Quorum and at present is a prototype. The company aims to make the coin compatible with every blockchain network.
