One of the world’s largest investment banks, JPMorgan, has started setting ambitious targets for its altcoin, JPM Coin. Umar Farooq, the Global Head of Financial Institution Payments at the bank, claimed that after the launch of the automatic payment system with JPM Coin, the altcoin will process $10 billion in daily transactions within one to two years.
Rapidly Growing JPM Coin Transactions
Farooq stated that considering JPM Coin currently processes around $1 billion in daily transactions, he expects significant growth between five to ten times in the next one to two years. Moreover, Farooq said, “We believe it will take off,” during an interview with Haslinda Amin from Bloomberg Television at the Singapore FinTech Festival.
JPM Coin facilitates payments in US dollars and Euros for corporate clients through a private Blockchain network. Although it is one of several operational Blockchain applications by a major bank, it still represents a small portion compared to the $10 trillion in daily transactions processed by JPMorgan.
Advocates of Blockchain technology argue that compared to existing technologies, Blockchain can provide instant payments at a lower cost. However, the scalability of digital ledgers has not yet been tested on the same scale as traditional payment networks. Therefore, the possibility of this prediction not coming true is also on the table.
JPMorgan and Programmable Payments
Interestingly, JPMorgan has already started using JPM Coin effectively in different applications. The investment banking giant recently took further steps in this field by introducing a programmable payment feature for the Blockchain-supported payment system Onyx and JPM Coin. This development allows customers to automate their payments and program the system to meet financial obligations such as overdue payments and margin calls.
Naveen Mallela, the Global Head of Money Systems at Onyx, announced that Germany-based technology company Siemens has set up its account for transfers using JPMorgan’s JPM Coin system and aims to target potential funding gaps.
JPMorgan’s JPM Coin system now enables customers to program their accounts by adding a series of conditions to facilitate fund movements for delayed payments and margin calls. The introduction of programmability is a significant milestone for cryptocurrencies and tokenized currencies, opening the door to a dynamic and event-driven infrastructure in the industry. This development is crucial for accessing real-time, automatic, and programmable treasury operations.
