JPM Coin Is the Wildest Big Bank Idea in Many Years

Re:JPM Coin Is the Wildest Big Bank Idea in Many Years by chumali on Friday March 22, 2019 @01:40PM (#19464898)

I think you might have misunderstood. JPM will not create a market for the coin or use it for lending. The coin will be 100% backed by deposits in client accounts and used to facilitate instantaneous transfers between clients in order to reduce settlement times (initially it will be utilised for dollar transfers with the possibility of extending it to other currencies and financial assets). Given it will be 1:1 backed by client deposits it cannot be used to skirt fractional reserve requirements (unless JPM changes the terms of issuance).

From JPMorgan’s Q&A on JPM Coin [0]:

> The JPM Coin isn’t money per se. It is a digital coin representing United States Dollars held in designated accounts at JPMorgan Chase N.A. In short, a JPM Coin always has a value equivalent to one U.S. dollar. When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time.

[0] https://www.jpmorgan.com/global/news/digital-coin-payments

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Re:JPM Coin Is the Wildest Big Bank Idea in Many Years by yingw787 on Friday March 22, 2019 @01:53PM (#19465032)

> unless JPM changes the terms of issuance

Is there any visibility/transparency on how JPM might change the terms of issuance in the future? If not, then the expected value of 1 JPM coin going forward doesn't always match the current face value of 1 JPM coin/1 U.S. dollar, no?

I'm interested to know what percentage in fees/opportunity costs JPM saves when shaving off settlement times by using JPM Coin; if it's the big real reason behind its conception or if there are other plans.

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