JPMorgan Chase & Co. is anticipating a significant increase in the volume of daily transactions processed by its digital token, JPM Coin. The bank’s Global Head of Financial Institution Payments, Umar Farooq, shared these insights in an interview with Bloomberg at the Singapore FinTech Festival.
Optimism for JPM Coin
Farooq expressed high optimism about the potential of JPM Coin, stating that the bank expects a five to tenfold increase in transaction volume. He emphasized the increasing popularity of the coin, stating, “We really think it’s going to start taking off.”
“We really think it’s going to start taking off.”
– Umar Farooq, Global Head of Financial Institution Payments
Currently, JPM Coin handles around $1 billion in daily transactions, mostly in US dollars. This volume, although substantial, is only a small fraction of the colossal $10 trillion in US dollar transactions managed by the bank daily.
JPM Coin operates on a private blockchain network, facilitating secure and efficient dollar and euro-denominated payments for wholesale clients. The bank has plans to expand the usage of this digital token.
The Quest for Scalability
While blockchain technology advocates claim that it can provide instantaneous payments at lower costs, the real-world scalability of digital ledgers is still an ongoing topic of exploration.
In light of this, JPMorgan’s official revealed that their “next step in that journey is to think about how you can create a more retail version of that, so that you can bring that same efficiency to consumers.”
