Recently, the crypto community marks a win while JPMorgan Chase & Co. introduces their cryptocurrency entitling it as the JPM Coin. Moreover, Jerry Brito is the executive director working at Coin Center. This organization is a nonprofit research and advocacy center targeting crypto currency and decentralizing tech.
According to Brito, the U.S. banking behemoth hasn’t introduced a cryptocurrency, however, more an in-house-operating payments system. Recently, Brito remarks:
There’s a lot of confusion. I see folks referring to it as a cryptocurrency. It’s not a cryptocurrency. A cryptocurrency is one that is open and permissionless, if you want to download it, you don’t need permission; you just need some software.
At last, he concludes that the JPM Coin is permissionless and accessible for download. It is said to operate on a private blockchain by the company. This runs with the co-operation from the Ethereum Enterprise Alliance.
The firms will help to issue the coins by a bank, opposing digital coins which operate on public blockchains like Ethereum. They intend to make it a common place where crypto ventures can easily issue their coin via an initial coin offering (ICO). He also adds:
I think they do a good job of explaining it on their website. They say it’s not public, unlike cryptocurrencies, [and] they say it’s not permissioned.
On the other side, an industry pundit concludes: it is not a stablecoin:
J.P. Morgan is launching a stablecoin. Soon every bank will issue one as well.
Closed systems for the world’s elite will always be beaten by open systems built for the common person.
Long Bitcoin, Short the Bankers!
— Pomp ? (@APompliano) February 14, 2019
JPMorgan states by way of explaining the difference between stablecoins and the JPM Coin. And as for those criticizing JPMorgan’s CEO for an apparent U-turn: Think again.
In case of some stablecoins (e.g., USDC) only exchange customers can mint (buy with US$) or redeem (sell for US$) stablecoins but anyone can own or trade them.
An executive director at SPR, basically a digital tech consultancy, Kevin McMahon:
There aren’t any inconsistencies between what [CEO] Jamie Dimon has said publicly about bitcoin and JPMorgan’s foray into distributed-ledger technologies and applications, because JPM Coin isn’t a true cryptocurrency.
Moreover, they believe that it does not expect to replace or compete with other coins like bitcoin. As this is an app of DLT to enhance specific business cases which JPMorgan along with their institutional clients holds currently.