Jamie Dimon, the chairman & CEO of JPMorgan Chase has hinted at the multiple uses of the firm’s proprietary digital currency JPM Coin., suggesting its potential adoption as a tender across retail outlets, CNBC reported February 26.
As Dimon indicated during the bank’s recent annual investor day:
“JP Morgan Coin could be internal, could be commercial, it could one day be consumer.”
Initially announced on February 14, JPMorgan Chase’s plan to launch its own cryptocurrency was spearheaded in an effort to boost the efficiency of transaction settlements across three of the banking giant’s subsidiaries. As the bank indicated, JPM Coin will initially be used for cross-border settlements between major global corporations, in an effort to expedite the transaction process which, as it stands, generally takes at least one day to complete through traditional financial systems like SWIFT.
Following the bank’s initial announcement, the initiative was equally met with both praise and scrutiny by the crypto community, among which includes Abra CEO Bill Barhydt, who recently hinted that JPMorgan misrepresented their new project, suggesting that JPM Coin was more akin to “a ledger meant for settling trades” instead of a digital asset, adding that:
“If it really is a private blockchain and private coin, I’m guessing it’s a complete waste of time.”
Similarly, Ripple (XRP) CEO Brad Garlinghouse also stated that the whole project “misses the point” of the concept behind digital currencies. That statement was followed thereafter by another Twitter post by Garlinghouse stating that:
“As predicted, banks are changing their tune on crypto. But this JPM project misses the point — introducing a closed network today is like launching AOL after Netscape’s IPO. Two years later, and bank coins still aren’t the answer.”
While JPMorgan’s foray into the crypto sphere has sparked several criticisms, others have also lauded the initiative. As Reddit co-founder Alexis Ohanian recently argued, while he did acknowledge that the project could be a good thing for the crypto industry, he also underscored a previous comment made by Dimon branding Bitcoin as nothing more than a fraud.