JPMorgan Chase CEO Jamie Dimon has said the company's new cryptocurrency JPM Coin could have a consumption one day, CNBC reported February 26.
During a question-and-answer season, Dimon said that "JP Morgan Coin may be internal, could be commercial, one day may be consumer." The coin will apparently find its use for retail payments.
US bank giant JPMorgan Chase announced plans to launch its own cryptocurrency in a US banking service on February 14, in a bid to increase settlement efficiency, first within three of its operations. JPM Coin will initially focus on international settlements from large corporations, and help speed up transactions that currently take a day or longer, using existing alternatives like SWIFT.
After the announcement, JPM Coin has found both lawyers and opponents in the cryptocurrency community. This week, Bill Barhydt, chief executive of cryptocurrency wallet and investment app Abra, suggested that JPMorgan Chase misrepresented its new initiative, saying it seems more like a "big box meant for settlement" than a coin. Barhydt also stated that "if it's really a private blockchain and private coin, I guess it's a complete waste of time."
Ripple (XRP) CEO Brad Garlinghouse also said that JPM Coin "misses the point" of cryptocurrency. Immediately after the announcement, Garlinghouse replied on Twitter that "as expected, banks are changing crypto. But this JPM project is missing out. Introducing a closed network today is like launching AOL after Netscape's IPO. Two years later, and banknotes are still not the answer. "
In contrast, the co-founder of Reddit Alexis Ohanian claimed that JPMorgan's last move is merely an indication that real innovation is taking place since the speculators have left his sector. While saying that the upcoming release of JPM Coin might be a good thing, Ohanian still noted that Dimon had previously called big cryptocurrency Bitcoin (BTC) a scam.