A JPMorgan executive says the bank’s flagship crypto is now processing a billion dollars worth of transactions every day.
In a new Bloomberg interview, JPMorgan’s (JPM) global head of payments Takis Georgakopoulos says that JPM is trying to address three major problems in the payments sector.
“We move $10 trillion every day, all around the world, and we’re always looking at: what are the inefficiencies of the current payment systems that we could improve upon. I think there are three major inefficiencies. Inefficiency number one is speed.
There are cut-off times, there are delays in making payments, especially cross-border payments. The second issue is money information moves separately, which makes it hard to reconcile, change, understand and track. And then number three, money is fungible, whereas our activities are not.”
JPMorgan launched JPM Coin in 2020 using Quorum, an open-source software project built on top of Ethereum (ETH).
Years later, Georgakopoulos says that JPM Coin is now doing over a billion dollars in volume daily within a network of large companies.
“And so, the reason we created the JPM coin, and in general we are looking at digital currencies, is a way to solve those three issues. What we do with JPM coin is the institutional side of that solution. Working in a permissioned environment with companies that are trusted and trust each other so that they can move money within their ecosystem 24/7, and today we move a billion dollars every day through the JPM Coin for a number of large companies, including here in Singapore…
The next step in that journey is how you can create a more retail version of that so that you can bring that same efficiency to consumers and, obviously central bank digital currencies are one way to do it. But also there is an opportunity for banks to create commercial versions of those deposits that work like deposits but because they work on a distributed ledger, because they work on digital currencies they bring the same 24/7 efficiency, the same zero cost, instantaneous transaction and the same ability to program how the payment takes place. That is the next generation for us in innovation.”
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