Popular US bank JP Morgan Chase has announced the starting of its cryptocurrency trial offerings. JPM, as the digital currency is tagged will be offered to corporate users and customers for product reviews and corresponding improvements. JPM was developed earlier this year and finds the application of use for remittances between corporate bodies and bonds settlement transactions in a digitized security pattern.
There has been long anticipation for fast intercompany settlements and bond transactions. As JPM promised to fulfill this long term needs, remittance services would become easier and optimally regulated between companies.
The bank has taken the blockchain turn as a matter of ease and customer satisfaction. According to the bank’s head of digital funding services blockchain Umar Faruk, it would be possible to move funds at low costs and almost immediately using the blockchain technology. He also added that this new development will also ensure that bond settlements and commodity transactions are properly executed. He continued to express that these could also attract international customers thereby building the bank’s user base.
The Future Is Digital
As Faruk made known during an interview with Bloomberg Japan, the future is “very bullish” on digitization and highly computerized. Securities and bonds will be highly encrypted, expanding the use of payments beyond ordinary paper works.
He expressed the disadvantages of the current settlement of government bond transactions which is highly susceptible to bankruptcy and resulting in losses.
When asked about JPM’s coin development, Faruk said that
“the technology is very good, but it takes time in terms of licensing and approval…”
In May, JP Morgan had announced its partnership plans with Microsoft. The partnership was meant to facilitate its use of Quorum(its customer-developed blockchain). In this formidable partnership, JP Morgan expressed its need for applications aimed at improving usability over Quorum’s technical customer support efficiencies.
The Pending Competition
Looking back, in 2014, JP Morgan’s Chief Executive Officer(CEO) Jamie Dimon had made public their long term plans and corresponding strategies. In his 2014 statement, “we will be looking to compete with Google and Facebook, other companies”, he said at a Euromoney Saudi Arabia conference in Riyadh.
Within the past three months, companies with big names like Facebook has announced plans to issue a cryptocurrency. Japanese Mitsubishi UFJ financial group is also planning along the lines of commercial digital currencies with the use of blockchain technology.