​​#News
JPMorgan has developed its own cryptocurrency and is going to test it

Engineers of the financial holding JPMorgan have developed a cryptocurrency called JPM Coin and are going to start testing it in real conditions. According to CNBC, the tests of coin will begin within a couple of months.

JPM Coin will be used for instant payments between clients of the holding and will be the first cryptocurrency supported by the Bank. Initially, only a small part of the transactions will be conducted using the token. This test is the first real use of a digital coin by a large American Bank.

For some, as noted by CNBC, the new currency JPMorgan may be an unexpected development of technology that took advantage of the financial crisis and should destroy the banking world. At the same time, the publication notes that ordinary investors are unlikely to ever be able to get a coin JPM Coin - it was created for institutional clients (corporations, banks and broker-dealers).

In fact, JPM Coin is a stablecoin - each coin is backed by a us dollar. Clients of the Bank will receive tokens after crediting money to the Bank, and at the end of settlements JPMorgan will destroy tokens, while returning deposits to their owners.

According to the head of the Department of blockchain developments JPMorgan Umar Farooq, in respect of the JPM Coin is considered three applications:

1. For international payments for large corporate clients;
2. For securities transactions;
3. As a replacement for the dollars that corporations keep in JPMorgan's vaults.

Earlier, the head of the financial holding JPMorgan Chase Jamie Dimon repeatedly criticized bitcoin. He called it" a fraud worse than Tulip mania " and threatened to fire any of his employees for trading cryptocurrency. However, he has always been enthusiastic about blockchain technology.

"The blockchain is the real thing. You can create cryptocurrencies, cryptodollars, and the like. But the ICO in each case should be considered individually, " Jamie Dimon said in January last year.