The largest bank in the United States announced on Thursday the launch of its own cryptocurrency, JPM Coin. It will be indexed on the US dollar to avoid fluctuations in its price. The news revolutionized the financial world as it will be the first major bank to use its own digital currency on blockchain.
The so-called "stablecoins" are developed as an alternative to have fiduciary money (issued by a government) on blockchain and to be able to transact with all the benefits of this new technology.
The JPM Coin will be used to make instant transfers between institutional investors (large companies, investment funds, hedge funds and pension funds), explains Umar Farooq, head of blockchain projects at JP Morgan.
"It is a digital currency that represents US dollars in the specific accounts in JPMorgan Chase, In summary, a JPM Coin will always have the value equivalent to one US dollar"
Initially JPM Coin can only be exchanged for US dollars, but the institution seeks to add more currency in the future.