JPMorgan has just announced the creation of a new digital token ‘JPM Coin’, that will be used to instantly settle transactions for institutional clients.
The major differences with the already established crypto’s is that each JPM Coin is redeemable for a single U.S. dollar, so its value shouldn't fluctuate. Clients will be issued the coins after depositing dollars at the bank; after using the tokens for a payment or security purchase on the blockchain, the bank destroys the coins and gives clients back a commensurate number of dollars
Such move was being predicted after JPM CEO, Jamie Dimon, has been constantly bashing bitcoin and other cryptocurrencies calling them a ‘fraud’ amongst other things. Furthermore, last year, J.P. Morgan banned the purchase of bitcoins by credit card customers whilst Goldman Sachs reportedly shelved plans to create a bitcoin trading desk after exploring the idea.
What’s in store for the de-centralized coins?
Holders of coins like Bitcoin may seize on the news that a major financial institution is issuing its own crypto as bullish for the asset class.
Others might think that this is just the begining of the end for these coins as more banks issue their own coins backed by a FIAT currency.
The value of Bitcoin stands at $3600, which is the same value as it was 2 years ago.
What do you think? Should we give the coin another chance or should we short it in brink of all this negative perception?
Would you like to start trading crypto currencies? Open an account with Kimura Trading today!