While Facebook’s stablecoin still finds it challenging to get off the page, JPMorgan’s has begun to be used. The first cryptocurrency from one of the major U.S. banks is in use by one of its most significant technology customers, Takis Georgakopoulos, JPMorgan’s head of wholesale payments told CNBC. Also, the bank created a new unit, Onyx. It will be responsible for blockchain and digital currency initiatives, the executive said.
JPM Coin is being used for cross-border payments, the executive said. But he didn’t say the client’s name. Thus, this became the first commercial use of JPMorgan’s stablecoin.
He also reported that other customers are entering the project. In February 2019, the bank announced that it was the first financial institution in the United States to successfully create and test a digital currency representing a national currency.
JPMorgan wants to create a network for central banks who wish to have stablecoin
Besides, JPMorgan wants to create new payment networks, especially for central banks that have shown interest in creating their cryptocurrencies. The executive recalled that China and Singapore, for example, are working in this area.
Despite the billions of dollars of investment, there are still a few practical uses of blockchain. So the news at JPMorgan can give a new impetus to blockchain and cryptocurrencies.
One of JPMorgan’s goals is to facilitate large customers’ payment operations, thereby generating savings of millions of dollars, Georgakopoulus said. The use of blockchain can, for example, assist in the confirmation of operations. As a result, it avoids rejections for data inconsistency, which generates a cost to the company.
In addition, you can apply this technology to paper bank checks processing. In this scenario, instead of sending the check by mail, you send the digital information. This change could generate savings of 75% of the industry’s total cost today and still make checks available in a matter of minutes instead of days, the executive said. However, this project is still months away from its commercial launch, said Umar Farooq, CEO of Onyx.