J.P. Morgan announced the creation of a blockchain-based currency, becoming the "first U.S. bank to create and successfully test a digital coin representing a fiat currency."
Umar Farooq, head of Digital Treasury Services and Blockchain for J.P. Morgan stated that "JPM Coin is currently a prototype that will be tested with a small number of J.P. Morgan's institutional clients, with plans to expand the pilot program later this year." He said that JPM Coin is currently designed for business-to-business money movement flows."
Further, Mr. Farooq said that JPM Coin has a value equivalent to one U.S. dollar. When one client sends money to another over the blockchain, JPM Coins would be transferred and "instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time."
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