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A couple of weeks ago, the banking giant JPMorgan launched its own cryptocurrency called JPM Coin and became the first major US bank to do so. The move by the one of the largest financial institution in the world came as a surprise to many since not too long ago, the CEO of JPMorgan Chase, Jamie Dimon, has criticized cryptocurrencies and went as far as to call Bitcoin a fraud.
The launch of JPM Coin was proof that the regardless of the views of its CEO, the company was adapting to the changing market that leaned towards crypto. But now it looks like Jamie Dimon might have had a change of heart as well.
Talking in favor of the bank’s cryptocurrency, Dimon hinted that JPM Coin could one day be used for retail payments. “JP Morgan Coin could be internal, could be commercial, it could one day be consumer,” said Dimon. During the digital currency’s launch, JPMorgan said that the cryptocurrency was designed to settle transactions for institutional clients for their international payments and securities transactions. A spokesperson was quoted saying, “The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.”
JPMorgan released an FAQ in which the company establishes that JPM Coin will have a lot of potential for possible commercial use cases. The bank noted that even though JPM Coin will run on the dedicated blockchain Quorum, it will also be operable on all standard blockchains.
Despite what the bank CEO commented regarding the possibilities of JPM Coin being used for retail purposes, it is unlikely for the foreseeable future and experts expect the virtual coin to be mainly used for business-to-business use cases.
Moreover, its website shows that the bank has no plans to offer access to JPM Coins to individuals. But the vote of confidence by Dimon shows that industry veterans believe in the ability of cryptocurrencies to bounce back from the current bear market. Just this week, Ukrain’s national bank was another major bank to have carried out a digital currency pilot project called E-Hrynvia, a national digital currency.
Investment of time, efforts and assets by established and seasoned institutions might actually end up helping the crypto market by encouraging and bolstering investor trust. Alongside the yearlong bear market, the development and innovation in the crypto space has been steadily moving forward. Hopes are that it is only a matter of time before the crypto market will stabilize and trend upwards once more.