If you were online on February 14 this year, you couldn’t have missed what many in the FinTech industry claimed was the announcement of the year – the launch of JPMorgan’s new digital currency, dubbed JPM Coin. Here’s what is interesting: right after the announcement, the cryptocurrency market saw a massive upward spike that analysts believe was a reaction to the launch of JPM Coin. Since then, it has been written about a lot. If you’re confused about why this is such a big deal, read on.
What is JPM Coin & how is it different from other cryptocurrencies?
JPM Coin is powered by blockchain technology; in particular, by Quorum which is a distributed ledger platform jointly developed by JPMorgan and a few of its partners.
Unlike the publicly-traded Bitcoin or Ethereum, JPM Coin is private or permissioned, which means, it will be controlled by and traded within JPMorgan. Initially, it will be made available to the bank’s institutional clients, primarily larger firms.