JP Morgan Creates First Bank Backed Cryptocurrency

JP Morgan Create Cryptocurrency

After the boom of Bitcoin in 2017 and the collapse in 2018, you would have thought that as far as cryptocurrencies go, the ‘professional finance’ jury was still out on whether they would represent a viable form of money in the 21st century. It seems, however, that one making banking group is willing to at least give it a try.

In a report via the BBC, banking giant JP Morgan has officially launched their own cryptocurrency.

JPM Coin

With the launch of the JPM Coin, this represents something pretty significant. Namely, that this is the first time that a bank-backed cryptocurrency will be available to both trade and mine within. The bank has revealed that the blockchain system has already been successfully tested with money successfully transferred to a clients account.

What Do We Think?

One of the biggest issues facing most of the more popular currencies is their lack of ‘legitimacy’. Put simply, both governments and banking organisations have been very reluctant to validate them as authentic and legitimate forms of financial transactions. It is somewhat ironic that JP Morgan has, as a whole, been highly critical of Bitcoin.

It may, therefore, be something of a mixed blessing. Yes, a cryptocurrency has been backed, but only by the bank who created it. Therefore, rather than endorsing coins, banks may just create their own. In fairness as well, with bank backing, people would probably be far more likely to try investments in them rather than risky unknowns.

What do you think? – Let us know in the comments!