JP Morgan Chase made waves in the crypto community this past week as they launched the JPM Coin news.
What is seen as an initial test for the future, It is understood that the Morgan Coin is based on JP Morgan Chase’s own private chain platform Quorum. It has been designed for the flow of funds between companies. Early applications are mainly reflected in cross-border payments, securities transactions, and replacement of US dollars for large corporate customers.
This appears to be a decisive moment for the industry, but what might this new development hold for the future?
Various leading figures have had their say on the topic. Dr. Victor Fang, founder of AnChain.ai, believes this is simply a reaction from JP Morgan to the sluggish Wall Street market. The largest bank in the United States is sending a signal to the outside world: This Wall Street centralized and supervised financial army is marching into the cryptocurrency world in an orderly manner.
Fang also touched on the centralisation/decentralisation argument claiming that a decentralised model was a utopia but felt that perhaps the stable currency introduced by JPMorgan Chase is a bit like a bridge that connects the huge gap between the two and is a compromise. Wall Street is using its strong financial support and sophisticated regulatory advantages to bring blockchain cryptocurrency technology to the forefront .
Xiao Feng, vice chairman and executive director of China Wanxiang Holdings Co., Ltd., is very optimistic in the face of Morgan’s launch of Morgan’s coin. But reiterated that Morgan is not a digital currency in a pure sense, but a more stable currency. Mimicking the views of the chairman of the DAEX Foundation, Gu Yanxi, who said:
“The stable currency based on the legal currency mortgage is not a real stable currency. Only the stable currency issued on a digital asset basis in a distributed manner is durable. The vitality .”
Liu Chang, Ph.D., Economics in Peking University, believes that if JPM Coin is successful, it will greatly help the competitiveness of Morgan Financial Services. This will motivate and force other financial companies to follow suit and use cryptography to transform the service system.
Whatever the case may be the news is certainly a positive step in the right direction, will it provide a bull run and spark interest in the market? I know for sure that when big banks get involved it can only be seen as a bonus in terms of outlook and appeal of the crypto space.