The world has seen a significant transition of cash currency to digital currency in the last few years. There has been a lot of innovations, new technology has evolved, new platforms have been developed etc. The competition in this space is very rigorous and this has impacted a positive future of digital currency.
In midst of all these inventions, one of the largest financial banks of worked JP Morgan has launched is own digital asset, known as JP Morgan Stable Coin. Since for the very first time any digital assets has been launched from such a big organization, most of the people are confused about the JP Morgan Stable coin. In this article, we will discuss 15 interesting points about JP Morgan Stable coin.
1. It is mainly designed to transfer fund across the globe instantly. Normally, it takes some time to transfer fund at international level but with the evolution of JP Morgan Stable coin, the value can be transferred easily and instantly, though it would be only for JP Morgan customers.
2, It is not a true cryptocurrency. As per most of the cryptoanalyst, there should not be any confusion about the fact that JP Morgan Stable coin is not a cryptocurrency. For a currency to be called as a cryptocurrency, it must be open and don’t need permission to be downloaded, rather it could be downloaded using a platform. JP Morgan Stable coin doesn’t qualify these criteria.
3. Not everyone would be using these coins at the initial stage right now. Only wholesale customers of JP Morgan bank would be able to access these JP Morgan Stable coin at this initial stage. Also, before using these coins, these customers would have to take permission from the bank itself. At this stage, you can’t use these coins without permission.
4. It works on a private and permission blockchain technology known as Quorum which developed by the JP Morgan itself with the help of another mega company of crypto space, Ethereum Enterprise Alliance. This technology is as easier as a Google sheet rather a bitcoin. Also, these stable coins will issue by the JP Morgan bank itself.
5. It is a direct competition to Ripple. Ripple which bags the third largest market cap in this crypto space has been solely providing the service of transfer of payments from one country to other at a very fast rate. Now after the evolution of such same service by JP Morgan, Ripple would be surely affected.
6. This JP Morgan Stable coin would finally be tied up with the dollars. Eventually, it is designed to enable the institutional customers of the JP Morgan bank to perform the instant transfer the payments among each other.
7. The JP Morgan Stable coin removes the trust problem even if for every minted stable coin, really one US dollar is held. This makes this project quite worthy and a bigger one as the above problem was haunting for a very long time for minting the stable coins.
8. Every person/organization that would be going to use the JP Morgan Stable coin would have to complete the process of verifications such as Anti Money Laundering (AML) and Know Your Customer (KYC). This would reduce the chances the fraud and scams in any kind of related transaction using JP Morgan Stable coin.
9. There would be a low risk of the closing of the coin issuing authority as in the case of JP Morgan Stable coin, the issuing authority is a financial entity having a yearly revenue of around $109 billion. This gives financial trust to people who are going to use these JPM coins.
10. JP Morgan Stable coin is presently designed for movement flows of one business to other business. As per one of the official, it would be made for individual use on the analysis of various factors like user response, efficiency profit, and cost-savings.
11. It will be under the supervision of high-quality securities and robust regulators and norms of the JP Morgan Bank which make it more secure and trustworthy digital coin as compared to other digital coins.
12. It is the first time in the history of United States banking that any such big bank has created and successfully tested a digital coin representing a fiat currency, dollar. JP Morgan became the first United State bank to achieve this milestone by creating this JP Morgan Stable coin.
13. The CEO of JP Morgan has once thrashed his opinion about the crypto world and bitcoin. He had used words like fraud and stupid saluting crypto coins. Now, as his bank announced the digital coin, most of the crypto world critics are slamming him and calling this newly launched JPM coin as a weak and fraud competitor to bitcoin.
14. With the evolution of JP Morgan stable coin, the clients would be able to use this coin to replace the US dollar that they have in their bank account to other similar accounts across the world. This will allow them to transfer the money with greater fluidity.
15. People must not be confused that JP Morgan Stable coin because of it, not a cryptocurrency, it is not decentralized, it is not open as well as it is not borderless. As per the officials of JP Morgan, it is a stable digital coin for replacing dollars and for fast payments.
15th February 2019 was a huge day for the crypto and digital world. The announcement of JP Morgan Stable coin set up a new milestone for instant payment across the world and the replacement of cash currency. It has promised a lot of things, let us see whether in future it is able to fulfill all its promises and give a tough competition to Ripple.