Indeed, even one of the United States' largest banks, JP Morgan, has just made a decision to jump on the crypto bandwagon. Farooq stated that the bank token can be used for "replacing wire transfers for worldwide payments by large corporate clients and cutting settlement times from days to just moments". It will be launched in a test mode in the coming months.
All the same, the possibility of instantaneously settling payments between bank clients without relying on wire-transfers proved too promising to pass up, and the bank announced Thursday it had already successfully tested its own "payment leg" for blockchain transactions.
It is worth noting that JP Morgan previously imposed a ban on cryptocurrency purchases via bank accounts.
Signature Bank is about 2 percent of the size of JPMorgan, according to Coindesk.
However, to be fair, J.P. Morgan has been heavily involved in blockchain research.
JPM Coin will not be available to everyone. It is a digital coin representing United States Dollars held in designated accounts at JPMorgan Chase N.A. In short, a JPM Coin always has a value equivalent to one USA dollar. There are those who believe that despite being centralized, the JPM Coin will inspire mainstream adoption of cryptos.
Major US bank JPMorgan has taken the wraps off 'JPM Coin, ' a blockchain-based "digital coin" that customers can receive by depositing US currency into their bank accounts.
What may surprise people from the cryptoverse is that JPMorgan's foray into blockchain technologies has forced the community to agree with American economist Nouriel Roubini, who has been something of a villainous figure in the space until now.
JPMorgan said it believes the new technology can help lower costs and risks associated with big money transfers around the world.
Furthermore, Farooq was also noted by CNBC as stressing that there are more potential use-cases for JPM Coin in the future. Farooq says: "Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit?"
At the same time, however, the most popular form of cryptocurrency, Bitcoin, has reportedly lost has lost more than 80% of its value since its peak. Bitcoin was created to "disrupt the established banking world" after all, according to CNN Business. It has promised a lot of things, let us see whether in future it is able to fulfill all its promises and give a tough competition to Ripple. It also suggests the biggest banks are moving away from the idea that distributed-ledger technology has benefits but digital currencies are nothing more than vehicles for money laundering.
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