Surely the peanut gallery has an opinion on this. Personally, I stay far, far away from such things.
It’s pegged to the dollar…
I absolutely think this makes zero sense. Why do they need a coin to do this? Perhaps I don’t understand it fully, but the same thing could be done using a database
Unless they have a promotional video with catchy music and a cute mascot, I’m not interested.
They’ve been using it for a year or so in testing with certain client accounts. The point is that the digital “coin” is the database and its faster / more efficient. Kind of the whole point of block chain, not sure how we’re still discussing this several years in.
Also to clarify, you can’t “buy” a JPMCoin. They’re instantly created and destroyed for each transaction, the lack of information around this is mind bottling.
It’s kind of cool that JPM is automating some of their back office work, but I don’t see JPM coin having a much bigger impact than that with the way it’s currently structured.
That’s the only point of it. It’s simply a JPM back office tool.
But that’s not why the JPM coin isn’t considered a cryptocurrency. There have been a few attempts at creating a true cryptocurrency that’s pegged to the dollar with the newest being Dai from MakerDao. It’s backed by Ether and Bitcoin. The concept is cool enough. A decentralized currency that’s stable enough to provide even short-term loans. It just hasn’t really worked out due to the volatility of the assets backing the stable crypto.
The JPM coin doesn’t fit the traditional mold of crypto for a few reasons, but primarily because it’s not decentralized.
Edit: Writing quickly…grammar fixes.
Dogecoin is where it’s at.
I didn’t say that was why, you just inexplicably started debating the statement “It’s pegged to the dollar…”. I simply said it’s pegged to the dollar indicating having thoughts on it from an investment perspective is pointless. Even moreso given that they’re created and destroyed for transactions and proprietary to JPM.
Much gains. Very rich. Wow. Tanks.
Blockchain is less effecient than a database. Can’t believe we are discussing this several years in…
At facilitating transactions? Even if I pretended I knew nothing about this whatsoever, on the one hand, I have RawRaw, nobody extraordinaire and on the other I have JPM’s entire back office team with a product that they’ve successfully tested for about six months… who to believe, who to believe.
As my edit indicated, I was writing quickly so my bad for not expressly indicating the intent of my comment. I was using yours has a jumping off point to further discuss stable crypto. I did infer that you meant the JPM coin isn’t a true cryptocurrency because it’s pegged to the dollar, but I was attempting to illustrate another point - that there are true cryptocoins out there that are pegged to the dollar but this isn’t one of them due to other factors. You rightly pointed out one, that it’s not really meant for public transactions, and I was honing in on the lack of decentralization.
Same page dude.
I’m curmudgeonly today.
is It their attempt at becoming a central bank?
I’m shocked and a little pissed that it took 9 replies in this thread for this video to get posted.
I’m starting to wonder if you even understand the difference between a Cryptocurrency and database. I was going to explain before you got snarky. You sound like you’ve read a few marketing materials and think you are an expert. I would not be surprised if this Cryptocurrency is actually just a database with a coin for marketing purposes. You are actually one of the last people I’d expect to think uncritically about stuff like this, so I’m assuming it means you generally do not understand that efficiency is not the reason people use blockchains. Do any part of these transactions leave the JP Morgan system in this pilot? Doesn’t read like it to me. Surely that means this is revolutionary
Well, I do understand the difference and they are using it for cross border clearing. I’m really not sure you understand actually. Also 100%, I’m going to go with their back office on this one vs you. I mean, they are being as explicitly clear about this as possible, that it is in fact a digital coin used for distributed ledgers and cross border transactions to provide currently unavailable near instant clearing. But you know, we’ll just let you go on about about what you don’t know or understand.
- Engineers at the lender have created the “JPM Coin,” a digital token that will be used to instantly settle transactions between clients of its wholesale payments business.
- Only a tiny fraction of payments will initially be transmitted using the cryptocurrency, but the trial represents the first real-world use of a digital coin by a major U.S. bank.
"J.P. Morgan is preparing for a future in which parts of the essential underpinning of global capitalism, from cross-border payments to corporate debt issuance , move to the blockchain. That’s the database technology made famous by its first application, bitcoin. But in order for that future to happen, the bank needed a way to transfer money at the dizzying speed that those smart contracts closed, rather than relying on old technology like wire transfers.
“ So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction,” said Umar Farooq, head of J.P. Morgan’s blockchain projects. “The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this.”"