JPMorgan Chase recently announced that it is getting ready to launch a cryptocurrency called JPM Coin. The traditional financial institution is one of the many who recently started exploring blockchain technology. The JPM Coin, just like the XRP token, will be used for instant payment settlement. Some members of the cryptocurrency community are worried that the JPM Coin may pose a threat to XRP. There are others who believe that the JPM Coin will help the cryptocurrency landscape rather than destroy it.
The JPM Coin Is The First Ever Token To Be Created By A US-Bank
The move by JPMorgan Chase was shocking to the cryptocurrency community because, in 2017, the CEO of the firm Jamie Dimon said Bitcoin is a fraud. While he took back the statement last year, it was still surprising that the financial institution decided to create a token that facilitates transactions between them and their clients almost instantly.
On a daily basis, more than $6 trillion is moved by JPMorgan to its clients around the world. Now, a small percentage of this figure would be used to test the integration of the JPM Coin. This is going to change the game in the cryptocurrency industry because only 2% of $6 trillion makes up for the entire cryptocurrency market capitalization. If the test run is successful and the coin is added to the list of cryptocurrencies, it can potentially displace Bitcoin on CoinMarketCapital’s list of top cryptocurrencies per market capitalization.
XRP (XRP) Price Today – XRP / USD
This move by JPMorgan is proof of the valuable use cases of cryptocurrencies and it provides significant support for Bitcoin and the entire market. Don’t forget that JPMorgan is a leader in the legacy financial system. So, other banks will be more inclined to explore cryptocurrencies because of this move leading to large scale adoption.
Cryptocurrency Community Reacts To Launch Of The JPM Coin
As expected, the entire cryptocurrency community had things to say about the announcement by JPMorgan Chase. Some suggested that the impact on the cryptocurrency industry may be negative especially regarding the progress of XRP and BTC. Some others believed it would be positive. Also, many members of the community made reference to the fact that Dimon, who on several occasions criticized cryptocurrencies to the point that he referred to his daughter as stupid for buying Bitcoin, now has to be CEO of a firm that has created its own cryptocurrency. One Twitter user with the handle @AlecZiupsnys said:
“JPMorgan is developing a cryptocurrency that would be called JPM Coin. This will make them the first bank in the United States to develop a digital token that would be used to settle transactions for clients. They ignore you at first, then they laugh at you, fight you and finally just buy BTC.”
Another well-known member of the cryptocurrency community, WhalePanda commented after the announcement stating that this move would be good for Bitcoin long term but it may not be good for XRP. In his words:
“Seriously, I believe this JPM Coin is going to be a positive thing for BTC long-term. Let them play with a stable coin. We just need more mainstream adoption, the cryptocurrency infrastructure is already in place.”
The move by JPMorgan will help build the interest of traditional financial institutions in cryptocurrencies. It is going to be beneficial to Bitcoin in the long-run and will increase the total market capitalization of cryptocurrencies. However, it threatens the XRP token significantly.
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