While JP Morgan Chase CEO, Jamie Demon has been busy bashing the leading cryptocurrency, Bitcoin by calling it a “Fraud” the company has been working on its own “cryptocurrency.” However, it came really “short” of creating a cryptocurrency.
Nick Szabo, a blockchain, cryptocurrency and smart contracts pioneer took to Twitter to call this out,
“JPM Coin and its near-twin the Petro lack the predominant source of value that distinguishes cryptocurrencies from bank money: trust minimization.”
While Bitcoin Proponent and founder of Crypto VC funds Heisenberg Capital, Max Keiser had this to say,
“American financial terrorist Jamie Dimon launches a competitor to Venezuela’s Petro.”
“JPMCoin is backed by the hundreds of billions we stole from our customers – and paid a minuscule fine – with the SEC’s help”. – Jamie Dimon.”
Anthony Pompliano, Founder and Partner at Morgan Creek Digital capital, further stated “J.P. Morgan is launching a stablecoin. Soon every bank will issue one as well. Closed systems for the world’s elite will always be beaten by open systems built for the common person. Long Bitcoin, Short the Bankers!”
According to Jerry Brito, executive directors at Coin Center, a non-profit focused on the policy issues facing cryptocurrencies shared,
“There’s a lot of confusion. I see folks referring to it as a cryptocurrency. It’s not a cryptocurrency. A cryptocurrency is one that is open and permissionless, if you want to download it, you don’t need permission; you just need some software.”
Neeraj K. Agrawal, also from Coincenter, quipped on Twitter, “Someone asked me privately why I am posting about JPM coin so much. It’s because I really don’t want to relive the last few years of explaining the difference between open and closed blockchains, but this time for the word cryptocurrency.”
How Is It Different
According to the official announcement by JP Morgan, it is a digital coin that is to make instantaneous payments by using blockchain technology. Umar Farooq, head of Digital Treasury Services and Blockchain stated,
“Exchanging value, such as money, between different parties over a blockchain requires a digital currency, so we created the JPM Coin.”
As for how it is different from cryptocurrencies, it has been shared that the “1:1 redeemable in fiat currency held by J.P. Morgan.” When it comes to the blockchain, it is a permission that is the blockchain solution, Quorum, built by JP Morgan and only institutional customers that will pass their KYC will be able to transact with JP coins.
It has also been mentioned that it is “exclusively for institutional customers” viz. corporates, banks, and broker-dealers.