JP Morgan rolls out first US bank-backed cryptocurrency to transform paymentsd

This is what being all marketing and no substance looks like.<p>What big companies think is cool and innovative is always several years behind what actually is cool and innovative. And they always miss the point, in this case what the idea of crypto is.<p>But big companies are masters of shouting loudly, as in this case where JPMC&#x27;s PR has gotten this story out in just about every major outlet. Whether this is anything beyond a PR exercise I don&#x27;t know, I get the feeling there are some quite strong internal forces that will not be interested in actually using this.<p>Someone I know works for a big 4 that is also roughly at this point in the delayed hype cycle. They are furiously selling blockchain solutions to everyone who will listen, and doing quite well at it. They did a firmwide review of internal skills recently, and amazingly there are zero staff who have any idea what a smart contract is. You wouldn&#x27;t know if reading about them in the news, but they are getting paid millions and millions for various projects that are currently undeliverable.

In the early days of the internet, companies like Microsoft and Lotus Notes invested in corporation-controlled private messaging applications instead of using things like email and the world wide web. But in the end the benefits of open standards and interoperability made public networks more useful than a walled garden.<p>JPM thinks a centrally controlled digital currency is better than a public currency. Of course there are benefits to JPM in controlling this currency.<p>The interesting thing to watch is whether public and interoperable digital currencies prove to be more valuable and useful than a centrally-controlled one.

Wow, this is big. I disagree with some of the negative comments here, but that is what I love about HN: diverse opinions.<p>Being able to not transact large amounts of money and instead using a permissioned blockchain to prove you have the funds seems like a great use case to me.<p>Although mining some ether was fun as was making money on bitcoin, I believe that the really interesting applications will probably be in permissioned systems that either like JP Coin allow virtual transactions or support smart contracts. To get started, taking the eDX course on blockchain for business is a good start.<p>I also admit that after working as an AI&#x2F;machine learning practitioner since the 1980s that blockchain applications interest me just because it is something new (for me).

That&#x27;s the intranet of money as opposed to the internet of money.

Any technical details? Is it a new currency or an ERC20 token? What is their proof mechanism?

I think the only reason this is legal are “cryptocurrencies are classified as commodity, not currency”. Banks can’t technically make their own currency, but commodities are okay.<p>I see this eventually becoming a fairly serious issue with the fed, if this takes off.

I mean, sure why the hell not. You could write&#x2F;buy&#x2F;subscribe to a strongly consistent distributed cloud kv store system to do the same more efficiently, but knock yourself out.

This tweet from CRW: <a href="https:&#x2F;&#x2F;twitter.com&#x2F;ProfFaustus&#x2F;status&#x2F;1096018468858667008" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;ProfFaustus&#x2F;status&#x2F;1096018468858667008</a><p>I don&#x27;t have too much to say besides I&#x27;m curious how things will develop around this over the coming months.

&gt; paymentsd<p>Is this a hipster daemon written in Go? :)

I don&#x27;t fully see how Dimon can back this, yet be so against Bitcoin. Based on the article, JP seems to be essentially building a distributed ledger, not too dissimilar to the one underpinning bitcoin (apart from the distinct possibility that it will not be quite as open as bitcoin).<p>Lol, I guess it&#x27;s only worthwhile when they do it?

it&#x27;s a false statement to call it a cryptocurrency. They simply set a permission private ledger for institutional usage. It has nothing to do with decentralized cryptocurrency with stable price, like MakerDao (or SableUnit)

&quot;While J.P. Morgan&#x27;s Jamie Dimon has bashed bitcoin as a &quot;fraud,&quot; the bank chief and his managers have consistently said blockchain and regulated digital currencies held promise.&quot;<p>They are only doing so because it saves them a ton of money.