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JP Morgan to launch its own cryptocurrency

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7 minutes ago, 3Tom said:

JPM may be monolithic but they can force SWIFT member banks to use their network. That would effectively capture the establishment banking community, which is Ripple's stated goal.

LOL!  JPM have killed the open IoV by retrofitting SWIFT.  The dream is dead.  Let’s all pack up and go home.

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8 minutes ago, Phintech said:

LOL!  JPM have killed the open IoV by retrofitting SWIFT.  The dream is dead.  Let’s all pack up and go home.

And get used to paying 50 dollar transaction costs to send money overseas, cause JP Morgan got us by the balls.

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54 minutes ago, LordAMV said:

 It stands to reason that there is a certain degree of trust or that JPM can use leverage to 'force' a client bank to use this tech.  If the value of the coin is always set to $1, then it's to be expected that it would be more trusted than a coin that fluctuates in value.  This is like asking why Swift exists - clearly the banks didn't trust each other as competitors but they still saw fit to form an international consortium. 

I just wonder, if there Will be a fixed price of maybe $1. How many coins must JPM create? Will other banks adopt the coins and make JPM even richer and bigger?

If all banks create their own digital assets, then there are still a need of value between them like todays Fiat. So there are no gain in create more than one DA all use with the same value?

Am i missing something?

No matter how it become, i think that asia are more into XRP than throw that aside and support a US bankcoin.

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10 minutes ago, RTKen said:

If all banks create their own digital assets, then there are still a need of value between them like todays Fiat. So there are no gain in create more than one DA all use with the same value?

Am i missing something?

No matter how it become, i think that asia are more into XRP than throw that aside and support a US bankcoin.

If the other banks were to all make their own DA's, I don't think this would be a problem if they also chose to set it to $1.00.  This would conceivably reduce the need to have some sort of intermediary asset, no?  If one JPM = 1 Citibank coin = $1 USD, etc. is an intermediary necessary?  You are right that banks in other regions might not follow this but we already see cases where the USD dominates and is used as the standard of trade, for example in the oil industry.  It is still used as the medium in much of international finance as well because of this. 

This could be another step towards that...although I admit I am not an expert at all in finance or the tech behind this field, it just seems to me that could be one way to get around what people see as intrinsic problems.  Clearly the banks united to implement Swift, I don't think it's much of a stretch to think that they might also collaborate to set their coins all at a stable value.

The key would be that each bank's DA would be able to operate on a singular network, whether that's the Quorum mentioned in the article or a future one managed by Swift.  

Edited by LordAMV

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1 hour ago, T800 said:

He provided some great insight into the bank issued coins here, nice find!

But Garlinghouse has labelled it deeply misguided. In a post on LinkedIn, he says: “A bank-issued digital asset can only really efficiently settle between the banks who issued it. Then, two scenarios can play out. Scenario one: all banks around the world put aside competitive and geopolitical differences, adopt the same digital asset, agree on its rules, and harmoniously govern its usage. Fat chance. Scenario two (the more likely scenario): banks not in the issuing group issue their own digital assets with their own sets of rules and governance.”

We’re seeing this already, he argues, with Citi’s Citicoin and Goldman Sachs’ SETLcoin. “The result would be an even more fragmented currency landscape than what we have today. If banks of different digital asset groups want to settle trades with one another, they’ll have to make markets between their unique digital assets or trade between their digital assets and a common fiat currency. What a mess!”

Another problem with the Utility Settlement Coin is it will be backed by a basket of currencies. Once backed by cash, it’s no longer an asset; it’s a liability, Garlinghouse claims. Trading liabilities then ultimately requires moving cash across borders, re-creating today’s system but adding more friction.

“We strongly believe banks need an independent digital asset to enable truly efficient settlement and we believe XRP (the native digital asset to the Ripple network) is best positioned for that role. It goes back to the fundamentals of what makes digital assets unique and special – they’re universal currencies, meaning anyone can use them as units of value anywhere in the world. That universality gives digital assets global reach and the ability to settle much faster than traditional assets,” he writes. “Compared head to head with other independent digital assets (like Bitcoin or ether), XRP settles the most efficiently cross-border, in just seconds. In fact, we’ve run tests with global banks to prove XRP can lower liquidity costs for cross-border trades. More to come on that front."

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2 minutes ago, LordAMV said:

If the other banks were to all make their own DA's, I don't think this would be a problem if they also chose to set it to $1.00.  This would conceivably reduce the need to have some sort of intermediary asset, no?  If one JPM = 1 Citibank coin = $1 USD, etc. is an intermediary necessary?  You are right that banks in other regions might not follow this but we already see cases where the USD dominates and is used as the standard of trade, for example in the oil industry.  It is still used as the medium in much of international finance as well because of this. 

 

This could be another step towards that...although I admit I am not an expert at all in finance or the tech behind this field, it just seems to me that could be one way to get around what people see as intrinsic problems.  Clearly the banks united to implement Swift, I don't think it's much of a stretch to think that they might also collaborate to set their coins all at a stable value.

The key would be that each bank's DA would be able to operate on a singular network, whether that's the Quorum mentioned in the article or a future one managed by Swift.  

Thank you for your answer.

we Will see, but its banks. They want profit from their business. Who Will pay the development of everything?

If they have several $1 assets, can JPM make 1000 piece and another bank 100?

Then there is no equal in it. And the co-operation Will problably fail.

 

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Doesn't surprise me. Who here uses JP Morgan as a bank though? It's like another one of those cash apps, maybe it'll be able to play nicely with other coins and allow you to buy JPMorganCoin with XRP, pay their $1 transaction fee then withdraw your XRP minus 1 dollar. 

 

Really though, it's just like a USD. It's no threat to XRP bc XRP can transfer anywhere, anytime and cash out in their native currency while JP Morgan coins are destroyed when used. 

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6 hours ago, Chris_Reeves said:

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.

Thanks @Chris_Reeves It looks like settlement is U.S dollars to U.S. dollars, so not so useful for cross-border settlement? "Over time" it will be extended to other currencies and they may see the function of XRP at that time IMO.

(bold emphasis is mine)

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