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The Almighty Buck United States

JPMorgan Chase Announces JPM Coin, Becomes First Big US Bank With Own Cryptocurrency (fortune.com) 74

J.P. Morgan Chase CEO Jamie Dimon called bitcoin a fraud in September 2017 and said, "You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart." By January 2018 he had walked the remarks back but said he still was "not interested that much in the subject at all." In February 2018, J.P. Morgan called cryptocurrencies "risk factors" to its business, something it never previously said. And now J.P. Morgan has become the first U.S. bank to offer its own cryptocurrency. From a report: But don't expect it to become an investment vehicle -- at least for now. The cryptocurrency, called "JPM Coin," is intended for the bank's wholesale payments business that moves $6 trillion around the world daily. As long-time former banker and now cryptocurrency industry figure Alan Silbert said of Dimon in a January 2018 tweet, "Backpedaling is the first step in the program towards walking the path."
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JPMorgan Chase Announces JPM Coin, Becomes First Big US Bank With Own Cryptocurrency

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  • by jfdavis668 ( 1414919 ) on Thursday February 14, 2019 @01:03PM (#58121874)
    to the encrypted laptop that contains all the data.
  • Mr. Robot (Score:4, Funny)

    by MightyYar ( 622222 ) on Thursday February 14, 2019 @01:05PM (#58121886)

    I've seen this show.

  • by Anonymous Coward

    it's finally here.

  • by kalpol ( 714519 ) on Thursday February 14, 2019 @01:06PM (#58121902)
    This sounds like it is just a ledger method to keep track of balance transfers within the business, so not really a currency at all.
    • If it is tied to the USD (fixed exchange rate), then I think so too.
    • by AlanObject ( 3603453 ) on Thursday February 14, 2019 @01:25PM (#58122008)

      This. I am sure that JPM is going to tie the coins to a cash reserve (most likely US$) and there won't be any mining of new coins to create new "wealth." (Note the scare quotes they are significant.) JPM will control the coin supply the same as the Fed controls the US dollar supply.

      This isn't Bitcoin. It is simply a new kind of open ledger using blockchains as kalpol said.

      However it might still be worth doing. People will still be able to trade JPCoins around the world and they will be far more stable than any free-floating cryptocurrency. What will be significant is if the coin owners are permitted to remain anonymous or not. If they are then eventually JPM will run afoul of authorities who don't want JPMCoins to be used to bypass currency controls and doing illegal stuff. I can't imagine JPM going this way but they stand to make a fortune (more of a fortune) if they do just off of transaction fees.

      • Re: (Score:1, Interesting)

        Seems to me a ledger for transactions is one of the few potential uses of blockchain that actually makes sense.
      • by Anonymous Coward

        Financial companies already make new wealth with debt, for every dollar is borrowed the central bank lets them move 90 cents like if they were real cents, so they get their money + interests + new money

        • Pretty much yeah, that's how we issue most currency. Wealth is production, so if there's 10% more stuff we need 10% more currency; then if you want 2% inflation, your 110% of currency must be 112.2% of currency.

          There's actually a problem in here: we make 110% as much stuff but have only 102% as many people, so there's 108% as much stuff per person and 110% as many dollars per person. Then we raise minimum wage by the 2% inflation and the poorest worker gets 102% as many dollars instead of 110% as many

          • Wealth is production, so if there's 10% more stuff we need 10% more currency

            You don't need 10% more currency; you just need the currency, in aggregate, to become 10% more valuable. Which will happen automatically through price adjustments without any change in the supply.

            • That actually leads to a market failure. Currency becomes more-valuable, thus people store currency to retain value. There's less and less currency, and wages must go down so people receive less currency. Currency quickly becomes scarce, and you get a recession--that's what 1930, 2008, and the others were.

              Debt compounds this. If a house requires 30,000 hours of total aggregate labor--producing all materials, shipping them, assembling them, etc.--then a middle-income person must work 15 years to purcha

      • by Anonymous Coward

        A ledger of my purchases and transactions is none of their business. There is no reason to link a ledger to any currency except to use it to control people, and we have had quite enough of that thank you very much.

        Crypto currency is a trap being staged by the NWO. If Hitler had crypto currency technology, there wouldn't be a jew left alive in Europe.

        If Pol-pot came to power today and he decided you and your children had to die, you wouldn't be able to buy gas, food, shelter, medicine, guns or ammo. As soon

      • by mino310 ( 5809058 ) on Thursday February 14, 2019 @01:56PM (#58122236)
        There are over 200 actual https://audacity.onl/ [audacity.onl] https://findmyiphone.onl/ [findmyiphone.onl] https://origin.onl/ [origin.onl] banks using Ripple right now. Ripple is owned by Santander bank.
    • That's what cryptocurrencies are - tokens for a ledger, in details: a protocol and set of rules to exchange and approve a ledger, however you might be right, they might not bother with all this tokens creation to reward transactions processing, tokens limits etc.
    • Re: (Score:2, Insightful)

      by Anonymous Coward

      To me it sounds like a way to avoid the transaction fees and reporting requirements of moving money around.

  • Anyone want to run a book on just how long JPMCoin is a thing?

    ...these our actors, As I foretold you, were all spirits and Are melted into air, into thin air...

    • Anyone want to run a book on just how long JPMCoin is a thing?

      As long as it's used internally only, it could theoretically be used indefinitely.

      My guess is, it's going to be used as a more hack-proof bank account system.

      This way, even in the most corrupt branch office, all account balances and transactions are registered in a tamper-proof blockchain.
      I wonder how banks kept all that straight before, without it.

    • protocol and set of rules to exchange and approve a ledger, however you might be right, they might not bother with all this tokens creation to reward transactions pro https://xender.pro/ [xender.pro] https://discord.software/ [discord.software] https://omegle.onl/ [omegle.onl]
  • My take is that IBM is pushing hard to get blockchain working and is really running this. They think that it's a viable product even if it isn't.

    Never underestimate the power of a golf game in getting stupid stuff implemented.

    • by ceoyoyo ( 59147 )

      Either that or JPM has figured out the advantages to issuing their own currency, er, excuse me, crypto coins.

      Question is which happens first: they lose interest or regulatory agencies gain interest.

  • Big deal! (Score:3, Funny)

    by Locke2005 ( 849178 ) on Thursday February 14, 2019 @01:45PM (#58122150)
    I haven't yet found any strip clubs that accept cryptocurrency!
  • The cryptocurrency, called "JPM Coin," is intended for the bank's wholesale payments business that moves $6 trillion around the world daily.

    So it's more like how regular people actually use money -- to buy groceries, pay your friend back for the clubbing night, etc., and not as its own investment vehicle. Except it's, uh 3 6 9, about 10-11 orders of magnitude larger. How adorable.

  • I hope it does not end up being a subprime cryptocurrency.
    • I hope it does not end up being a subprime cryptocurrency.

      Unlike those real cryptocurrencies that use real primes for their cryptography.

  • JP Morgan: Because if you're going to print money, why not leave it to the experts. [washingtonpost.com]
  • When the big boys get involved in something, you know it's time to get out. They have the resources(bought politicians, computing power, brain power) to fleece everyone.
  • Smear them with your shit

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