J.P. Morgan is Backing the US’s First Bank-Approved Cryptocurrency

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Engineers at J.P. Morgan have created the first digital cryptocurrency to be backed by a national bank in the United States. Named JPM Coin, this digital currency will be provided to clients of J.P. Morgan and will be used to settle payments between wholesalers. 

The lender, which moves more than $6 trillion across the globe every single day, has introduced this cryptocurrency to large corporations in a small trial-based test. Clients will be invited to participate, and Morgan’s engineers have promised that the transactions will be flawless, safe, and secure. Because it will be slowly introduced, experts believe that J.P. Morgan will garner the necessary data to quickly scale their business. 

Although banks have lashed out against bitcoin and similar digital currencies in the past, J.P. Morgan’s backing suggests that executives believe that the framework is in place to safely convey purchases. 

Describing how this may impact the world of banking, Umar Farooq, head of the blockchain project, announced, “So anything that currently exists in the world, as that moves on the blockchain, this would be the payment leg for that transaction. The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.”