A leading financial holding USA J. p. Morgan’s developed its own stablon called JPM Coin and intend to start experimenting with it in real conditions for several months, writes CNBC.
JPM Coin created by the Bank engineers, and tests will be part of a broader initiative JPMorgan in corporate payments, where the Bank handles the daily operations for $6 trillion.
As the head of the blockchain, JPMorgan Umar Farooq, the organization sees the widespread use of blockchain technology in the future, but before that happens, it needs to be a method that would provide cash transfers at the same rate, with smart contracts.
He also identified three main applications of the JPM Coin: international payments for corporate clients, which is currently mainly occur with the use of outdated networks like Swift, the transfer of securities and to replace the dollars that corporations keep in the vaults of JPMorgan.
According to Farouk, each unit of JPM Coin will be provided in USD. Customers will receive the tokens after depositing the money in the Bank, and upon completion of all necessary calculations JPMorgan will destroy them, returning deposits to their owners.
With time, suggested Umar Farooq, JPM Coin can also be used for mobile payments.
“Almost all the major corporations and banks in the world are our clients. But even if it were restricted to institutional clients of JPMorgan, this must not deter us” — he added.
It is assumed that in the test trials JPM Coin will be attended only by large institutional clients such as corporations, banks and broker-dealers.
Note that despite all the criticism, with which the head of JPMorgan Jamie Dimon spoke at the bitcoin address, the Bank is actively interested in cryptocurrencies and blockchain technology. So, in may of last year it became known that JPMorgan creates its own strategy in the field of cryptocurrency. When the Bank applied for a patent on the system, involving the use of blockchain technology to accelerate and verification of financial transactions.
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