The team at Binance has conducted initial research into the recently announced JPM Coin which is in development. JP Morgan, who has been suspicious of cryptocurrencies in the past, is all slated to release a new cryptocurrency, known at JPM Coin. The coin is already in the process of real-world trials. The CEO of Apra, a Bitcoin trading wallet, even went far as saying the currency was a “waste of time”.
Quite obviously the CEO of JP Morgan Chase, Jamie Dimon, has supported the cause and also spoken about the coin’s potential for commercial use. In fact, the entire crypto community is interested in seeing what the impact of this coin has on the ecosystem.
Binance’s research had been to deliver insights and analyse the market; they have been conducting research on the implications and the results are in. What is interesting is that since the JPM Coin is being built on the closed network Quorum, its initial impact on the crypto market may not be of much consequence. The report says,
“While JPM Coin does have the potential to materially impact traditional financial services, it will not displace liquid, publicly traded stablecoins in the near-term given its private, permissioned structure… As such, it not expected to compete with other coins or networks, with particular reference to Ripple, due to their focusing on “improving different elements of traditional finance.”
The report also outlines how being a bank backed coin may ultimately help in legitimizing the market as well as the technology at large. It could also contribute to hasten the progress of the community and help in its integration into the mainstream. JPM Coin could also prompt other financial institutions to start thinking about their blockchain and crypto options. It could lead the way for a global decentralized economy which, however “will not appear overnight with everyone running on public blockchains”.
The report outlines the pros and cons of this upcoming coin, but it is only for time to tell what the reaction of the crypto space will be.