In February, the bank launched its own stablecoin, and already heated discussions broke out around this asset. At the annual Investor Day, the head of the credit institution, James Dimon, announced the possibility of JPM Coin stablecoin purchase by private individuals.
The fact that JPMorgan bank launched its own cryptocurrency has become a real sensation in the financial world. Although here and previously declared an interest in digital financial assets, few people were serious about these words. The head of the credit institution, James Dimon, in the summer of 2017 called cryptocurrency a hoax and monkey business. And although he later regretted these words, his attitude towards cryptocurrency became obvious and understandable.
However, many Asian lending institutions announced their interest in new financial instruments. Investors were sure that the first bank stablecoin will appear here.
In the summer of 2016, the Mitsubishi UFJ Financial Group banking consortium announced the start of testing the blockchain technology. The experiment is based on the use of MUFG Coin stablecoin.
However, the Americans here were able to beat the competition. While the Japanese were testing, in the United States began to use cryptocurrency for operations within the company. However, not everything is so simple.
Now at JPMorgan, a new asset is used only for internal payments. However, the head of the bank said that in the near future it would be used for exchange operations between credit institutions. And then the token will be released in public circulation and will be available to individuals. Here they see three directions for the development of new technology:
Especially pay attention to the last point. The fact is that bankers are proposing to replace traditional dollars with their equivalent in the blockchain. In the long term, this can lead to unpredictable consequences, because in fact, the dollar will have a competitor in the struggle for the interest of the consumer.
Ripple Labs responded most quickly to the news of the emergence of stablecoin banking. Its head, Brad Garlinghouse, said that bankers do not understand the essence of the blockchain, and everyone is doing wrong. It seems that Ripple was very excited because of the appearance of such a competitor.
The head of Berkshire Hathaway, Warren Buffett, didn’t comment on the JPM Coin. He said that he knew about this project, but he called for finding differences between cryptocurrency as a financial asset, and blockchain as a technology.
Warren Buffett in an interview on February 25 said that he still considers Bitcoin a bubble. At the same time, he noted that people hope with his help to change their lives for the better.
Perhaps a famous expert will someday change his point of view. After all, James Dimon changed his attitude to cryptocurrency. And from an ardent opponent turned into a supporter of new technologies.