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JP Morgan to launch its own cryptocurrency


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1 hour ago, Tripple said:

It's not great news for Ripple who currently have a first-mover advantage in the space, but it's hardly surprising that they're trying to emulate these technological innovations given how much JP Morgan stands to lose from the disruption of cross-border payments. What this does tell us, though, is that there is currently no better solution for settlements - so that's encouraging! 

There's also the 'Why JP Morgan?' issue: why will anyone continue to use them as a clearing house from cross-border payments when they now don't have to?

I don't think it is bad news for Ripple unless JPM becomes the only bank in the world and everybody on earth will be their client and JPM hires everybody from Ripple to recreate what they already created. 

We've seen this story again and again. 

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So at its simplest form,  The Folks @Ripplelike @JoelKatzand Brad Garlinghouse are scared or they are not.

If they are scared, we would see massive marketing push and sell, sell, sell to drive the business.

If they are not scared (this is the camp I am in), then there are 2 possibilities:

    Option 1- They are blind with there head in the sand and should be scared.

or

   Option 2- They have quietly and effectively positioned themselves in a dominate role in the newly accepted technology world of DA, banking and the Internet of Value. (I PICK THIS!)

The newly accepted technology of blockchain - By this I mean,  when JP Morgan initially denies the future possibilities and then makes an announcement like this.....Blockchain is about to be mainstream.

Its also important to note that the JPM coin is years away and actually means nothing outside JPM to JPM networked institutions.  

JPM will just start their testing later this year.

#HODL - But watch the competition in case its option #1

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30 minutes ago, Benchmark said:

I don't think it is bad news for Ripple unless JPM becomes the only bank in the world and everybody on earth will be their client and JPM hires everybody from Ripple to recreate what they already created. 

 

They already seemed to infer that? :

"J.P Morgan is betting that its first-mover status and large market share in corporate payments — it banks 80 percent of the companies in the Fortune 500 — will give its technology a good chance of getting adopted, even if other banks create their own coins.


Pretty much every big corporation is our client, and most of the major banks in the world are, too," Farooq said. "Even if this was limited to JPM clients at the institutional level, it shouldn't hold us back."

 

---Also for those that think this is a 'silo play' on their part and don't think they're going after Nostro/Vostro what does this mean:

"Money sloshes back and forth all over the world in a large enterprise," Farooq said. "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? That way, they can consolidate their money and probably get better rates for it."

 

Oh and is this the news Bearable Guy said we were getting the on 14th?!

 

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3 minutes ago, 3Tom said:

This is not good news. JPM is a Federal Reserve conduit. Ripple threatened the Fed's deep state political weapon. They have now countered with their own crypto. I will hodl but I'm losing hoep. 

I mean this with all due respect but to think that JPM Coin is a threat to the Ripple use case for XRP is to essentially misunderstand the structural model of XRP.

  • Why would another bank trust JPM Coin?
  • If another bank makes their own coin, how do they settle between their coin and JPM Coin?
  • Why and how is a stablecoin a threat to a non-fiat backed digital asset?

Counter party risk is a real thing and XRP solves that. Stablecoins issued by banks does not.

These are two entirely separate use cases. 

 

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JPM has tight knits with the FED.  all those claiming ripple was partnering with JPM are fools.  Say they did meet with JPM, JPM would rip off their tech and implement their own.  Ripple is probably numbered on this news and Swift striking hard saying ripple isn't as good as their platform. 

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16 minutes ago, 7Bs said:

"J.P Morgan is betting that its first-mover status and large market share in corporate payments — it banks 80 percent of the companies in the Fortune 500 — will give its technology a good chance of getting adopted, even if other banks create their own coins. 

And how much of cross border payments does JPM handle?

Great for them to have 80 percent of Fortune 500 as clients, but it's a somewhat vague indicator.

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2 minutes ago, Chris_Reeves said:

Please look at this link from JPM before we speculate.

 

https://www.jpmorgan.com/global/news/digital-coin-payments

Published - February 14, 2019

J.P. Morgan this month became the first U.S. bank to create and successfully test a digital coin representing a fiat currency. The JPM Coin is based on blockchain-based technology enabling the instantaneous transfer of payments between institutional accounts. We sat down with Umar Farooq, head of Digital Treasury Services and Blockchain, to find out more about the announcement and what it means for the future of payments.

So what exactly is the JPM Coin and what is it used for?

JPM Coin is a digital coin designed to make instantaneous payments using blockchain technology. Exchanging value, such as money, between different parties over a blockchain requires a digital currency, so we created the JPM Coin.

Are JPM Coins a currency or legal tender?

The JPM Coin isn’t money per se. 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 U.S. dollar. When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time.

Will it be used for other currencies besides the U.S. Dollar?

Over time, JPM Coin will be extended to other major currencies. The product and technology capabilities are currency agnostic.

 

How did you test the JPM Coin?

We successfully tested the movement of money between a client account and a J.P. Morgan account using the new technology.

What is J.P. Morgan's official stance on cryptocurrencies?

We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated. 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. Ultimately, we believe that JPM Coin can yield significant benefits for blockchain applications by reducing clients’ counterparty and settlement risk, decreasing capital requirements and enabling instant value transfer.

Why is it beneficial to have J.P. Morgan's involvement?

With our fortress balance sheet, expertise in blockchain and global payments network, J.P. Morgan can seamlessly and securely transfer and settle money for clients around the world. 

Strong Balance Sheet - with a $2.6 trillion balance sheet, JPMorgan Chase N.A. will redeem each JPM Coin in fiat currency. In other words, one JPM Coin represents $1.

Security and Innovation - JPMorgan Chase, the largest U.S. bank, spends approximately $800 million each year on cybersecurity and has a Blockchain Center of Excellence that is leading innovation in financial services.

Strong Controls and Compliance - In addition to hundreds of millions of dollars invested annually in cybersecurity, JPMorgan Chase has strong AML and KYC controls in place.

Regulatory Oversight - being a nationally chartered U.S. bank with global presence, JPMorgan Chase must comply with banking laws and regulations. J.P. Morgan is supervised by banking regulators in the United States and in the international jurisdictions in which it operates.

Are regulators supportive of the JPM Coin?

JPM Coin is currently a prototype. As we move towards production we will actively engage our regulators to explain its design and solicit their feedback and any necessary approvals.

Does the JPM Coin run on Quorum, J.P. Morgan's blockchain technology?

The JPM Coin will be issued on Quorum Blockchain and subsequently extended to other platforms. JPM Coin will be operable on all standard Blockchain networks.

What impact will JPM Coin have on J.P. Morgan's other businesses like Custody or Clearing & Settlement?

It is still too early to assess the ultimate impact of blockchain on different businesses. We continue to work with our clients around the world to explore different use cases for this type of technology.

Does the development of JPM Coin have any impact on the Interbank Information Network (IIN), J.P. Morgan’s new blockchain network?

IIN transfers information, not payments, between correspondent banks. The JPM Coin, representing fiat currency, is designed to instantaneously transfer value.

Can I use JPM Coins as an individual consumer?

JPM Coin is currently a prototype that will be tested with a small number of J.P. Morgan’s institutional clients, with plans to expand the pilot program later this year. JPM Coin is currently designed for business-to-business money movement flows, and because we are still in a testing phase, we don’t have plans to make this available to individuals at this stage. That said, the cost-savings and efficiency benefits would extend to the end customers of our institutional clients.

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So this is a private chain token that will represent money held in JPM accounts and be used internally to transfer money between JPM accounts.

15 minutes ago, Chris_Reeves said:

What impact will JPM Coin have on J.P. Morgan's other businesses like Custody or Clearing & Settlement?

It is still too early to assess the ultimate impact of blockchain on different businesses. We continue to work with our clients around the world to explore different use cases for this type of technology.

"Too early." They are signalling to investors that now is the perfect time for others to invest in their coin. But the perfect time to invest in the tech was a while ago. Now is just a great time.

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