JPMorgan's flagship cryptocurrency is now handling a staggering one billion dollars worth of transactions every day, according to the bank's global head of payments, Takis Georgakopoulos. In a recent Bloomberg interview, Georgakopoulos highlighted three major problems in the payments sector that JPMorgan aims to address.
Georgakopoulos explained that the first major inefficiency is speed. Current payment systems have cut-off times and delays, especially for cross-border payments. The second issue is the separation of money and information, which makes it difficult to reconcile, change, understand, and track. Lastly, money is fungible, but activities are not.
To tackle these inefficiencies, JPMorgan launched JPM Coin in 2020. Built on top of Ethereum's open-source software project, Quorum, JPM Coin is designed to facilitate faster and more efficient transactions. It operates within a network of large companies and has already reached a daily volume of over one billion dollars.
Georgakopoulos emphasized that JPM Coin is the institutional side of the solution. It enables trusted companies to move money within their ecosystem 24/7. The next step in their journey is to create a retail version that brings the same efficiency to consumers. This can be achieved through central bank digital currencies or commercial versions of digital deposits that work on distributed ledgers.
JPMorgan sees the development of a retail version of their solution as the next generation of innovation. By leveraging digital currencies and distributed ledgers, they aim to provide consumers with 24/7 efficiency, zero-cost transactions, and programmable payment capabilities. This innovation will revolutionize the way payments are made.
JPMorgan's flagship crypto, JPM Coin, has become a powerhouse in the payments sector, processing over one billion dollars in daily transactions. By addressing the inefficiencies of current payment systems and leveraging digital currencies, JPMorgan is paving the way for a more efficient and inclusive financial ecosystem.
