The largest U.S. Bank JPMorgan has created his own cryptocurrency called JPM Coin. The digital asset will be operating in a private decentralized network, developed based on blockchain technology.
The Bank plans to use a JPM Coin in the process of implementation of money transfers between corporate clients. According to employees of the company, with the help of cryptocurrencies and blockchain technology will be able to speed up the process of transactions.
JPMorgan began work on the project to create a JPM Coin in 2018. The need to develop their own cryptocurrency was due to the need to improve existing operational processes. Virtual currency of the Bank represents stablein, its exchange rate pegged to the us dollar. According to the head of the Department of blockchain JPMorgan Umar Farouk, the Bank will conduct testing of the virtual currency and blockchain over the next few months.
JPMorgan became the first American Bank to set up your digital asset. This momentous news was commented by the co-founder of the cryptocurrency hedge Fund Prime Factor Capital Adam Grimly: "JPMorgan was able to achieve high results. The first shot is the most important in any war. JPM Coin will be the first step towards the use of blockchain and digital assets of major financial institutions."
In 2017 JPMorgan developed interbank information network (Interbank Information Network) based on the blockchain of cryptocurrency ~2670]]">Ethereum (ETH). Now she unites 157 banks from around the world. With her help was able to improve the communication process between the banking institutions and thus accelerate the processing of remittances.
It is worth noting that JPMorgan handles a day payments in the amount of $5 trillion. So the blockchain technology and cryptocurrency will be tested by the Bank on a large scale. If the test run is successful, then the effectiveness of blockchain and digital assets will be proven in practice. This will open the way for further integration of innovations in mainstream financial sector.