The head of JPMorgan`s blockchain operations, Umar Farooq had told CNBC about trials of the JPM Coin that are going to start in the upcoming months and three use cases have already been seen.
He said in an interview “The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this,”
The finance sector will be shocked by this move as JPMorgan has previously been known to adopt a fairly hostile view of cryptocurrency in recent years.
CEO Jamie Dimon called Bitcoin a fraud in 2017 and the entire price of the Bitcoin managed to move as a result. He later vowed not to mention the topic again.
Other executives have also been observed to warm up to the cryptocurrency industry and last year rumors were circulating that JPMorgan would launch instruments related to the Bitcoin.
“Money sloshes back and forth all over the world in a large enterprise,” Farooq further added, “Is there a way to ensure that a subsidiary can represent cash on the balance sheet without having to actually wire it to the unit? That way, they can consolidate their money and probably get better rates for it.”
The bank has filed a patent for P2P interbank blockchain payment system in May, with settlements between large corporate clients being the main focus for the coin.
The JPM Coin will be a part of JPMorgan`s treasury service features and the coin will also become a part of securities transactions. JPM Coins will act as a 1:1 dollar substitute and a very small percentage of the total flows will make use of cryptocurrency.
Daniel Pinto, the bank`s co-president went on record to admit last year that cryptocurrency will play a role in the future global economy.