JPMorgan Chase & Co. unveils its recently launched digital coin, namely JPM coin being commercially used this week for the first time. The breakthrough happens at the right time as cryptocurrency is gaining ground in 2020.
JPMorgan Launches Commercial Use Of JMP Coin
Takis Georgakopoulos, the global head of JPMorgan Chase & Co. announces in a recent statement that their digital coin is going live commercially this week for the first time ever. JPM coin will be used by the firm’s technology partner to carry out transactions across the globe.
The cryptocurrency technology is now more popular than ever. Expert analysts argue that cryptocurrencies will influence traditional commercial transaction systems in the recent future. JPMorgan Chase is working towards that goal. The company has also created a new business called “Onyx” to improve and work on its blockchain tech and digital currency.
In a recent phone interview, Georgakopoulos stated that the new blockchain unit houses approximately 100 staffers working on connecting cryptocurrency with real business. He further mentioned that the world is moving towards a time that will witness the commercialization of cryptocurrencies and digital cash that can be used for real business transactions in place of the traditional forms of payment.
Blockchain industries have made massive improvements in the recent past and have attracted major investment from institutional investors and hedge funds but there has been little in the form of tangible results yet.
The lack of tangible results has caused investors investing in blockchain start-ups to drop by 35% to approximately $2.79 billion in 2019. JPMorgan’s new JPM coin being used commercially is the first of its kind in the blockchain industry. This move is to give the cryptocurrency industry the necessary boost. This news along with PayPal’s recent announcement that customers will be able to purchase using cryptocurrency from next year has also led analysts to believe that cryptocurrency will soon become a part of mainstream modes of payment.
JPMorgan To Improvise Cross-Border Payment Using New Blockchain Unit
JPMorgan is looking to simplify the process of cross-border payments with the help of the cryptocurrency industry. The company states that it suffers from expensive rejections because of minor errors while moving money across the globe. They are building an international network of banks called “Liink” that can ensure the validation of payments beforehand. Umar Farooq, Onyx CEO states that this move will save a lot of money that is lost on simple errors.
Another area that they are working on is the using blockchain technology to replace checks issued to the company. Estimates state that this move can save up to 75% of the total cost of the company. The method will further simply the mode of exchange and save time in the process as well. But this project is not yet ready to be commercially launched.
JPMorgan officials state that the company is making revolutionary progress in the field but is quiet because the process in still under construction.