JP Morgan: Planning For A Digital Currency Future
JP Morgan: Planning For A Digital Currency Future by Rory for The Daily Coin
Why would JP Morgan / Chase, a stake holder in the Federal Reserve Bank and defacto owner of the Federal Reserve Note be discussing the demise of the Federal Reserve Note as world reserve currency? The Federal Reserve Note, and the world reserve currency status is where JPMorgan / Chase derives all – 100% – of their wealth, influence and power. Without the Federal Reserve Note, U.S. dollar combined with the world reserve currency status JPMorgan / Chase, along with the other stake holders of the Federal Reserve Bank and note, would lose a lot, if not all, of their power, wealth and influence. This can only mean one thing – JP Morgan knows what’s coming and is now actively preparing for that change.
This is now the second article, that we have republished, pointing to JPMorgan / Chase stating the world reserve currency status would be coming to an end. On July 24, a mere 24 hours ago, we published a video by Silver Fortune – JP Morgan – Predicting the End of the Global Dollar Standard
It was just a few months back that JP Morgan announced they were developing their very own cryptocurrency to be used on their blockchain for payments within the JPMorgan / Chase bank system.
We picked up an article by Wolf Richter, Wolf Street, where he explained what was happening like this.
It represents US dollars, “held in designated accounts at JPMorgan Chase N.A.” and is “1:1 redeemable in fiat currency held by J.P. Morgan (e.g., US$).”
It’s a prototype to be tested “with a small number of J.P. Morgan’s institutional clients.” The pilot program “is currently designed for business-to-business money movement flows,” and if it works out, the test may be expanded. “We don’t have plans to make this available to individuals at this stage,” J.P. Morgan says.
It was created so that J.P. Morgan could use the blockchain technology for payments. Processing payments over a blockchain “requires a digital currency, so we created the JPM Coin,” J.P. Morgan said.
It’s funny that just about two years ago, September 2017, JPMorgan / Chase, CEO Jamie Dimon stated bitcoin was a “fraud” and he would “fire anyone trading it for being stupid“. This was quickly followed by the announcement of the JPM Coin. hmmmm.
No, the answer is Jamie Dimon, who in an angry outburst during the same conference in which he preannounced JPM’s 20% trading revenue drop, lashed out at the cryptocurrency, calling it a “fraud” which is “worse than tulip bulbs. It won’t end well”, will “blow up” and “someone is going to get killed.” Oh, and in conclusion, “any trader trading bitcoin” will be “fired for being stupid.” Source
Now, February 2019, JPMorgan / Chase announces JPM Coin, yep, a cryptocurrency utilizing Federal Reserve Notes issued by the Federal Reserve Bank. Who’da thought?!
From JP Morgan
J.P. Morgan this month became the first U.S. bank to create and successfully test a digital coin representing a fiat currency. The JPM Coin is based on blockchain-based technology enabling the instantaneous transfer of payments between institutional clients. We sat down with Umar Farooq, head of Digital Treasury Services and Blockchain, to find out more about the announcement and what it means for the future of payments.
Fast forward 5 months and JP Morgan is talking about the demise of the Federal Reserve Note as world reserve currency!!!
The US dollar will struggle to remain the top international currency in the coming decades as the rising power of Asian economies is set to undermine its leading position, Wall Street bank JPMorgan Chase has predicted.
“The US dollar has been the world’s dominant reserve currency for almost a century,” the bank’s strategist Craig Cohen wrote in a report earlier this month.
However, we believe the dollar could lose its status as the world’s dominant currency…due to structural reasons as well as cyclical impediments.
Many other currencies came to their demise throughout history, thanks to shifts in global economic centers, which is now poised to move towards Asia, the strategist points out. While China’s accession to global superpower status is believed to be one of the factors of this shift, it’s not the only one.
The Asian economic zone as a whole (from the Arabian Peninsula and Turkey in the West to Japan and New Zealand in the East, and from Russia in the North and Australia in the South) accounts for two-thirds of global economic growth and 50 percent of global GDP. The growing purchasing power of the region will boost the number of non-dollar transactions, eroding the greenback’s reserve currency status and setting the grounds for its replacement as the dominant international currency, according to the bank.
“In other words, in the coming decades we think the world economy will transition from the US and US dollar dominance toward a system where Asia wields greater power,” JP Morgan concludes.
The only advice here, according to the bank, is to get rid of US dollar ‘overweights’ in investment portfolios and to diversify. While some banks are dumping the dollar in favor of the euro, others prefer a more stable source of value, gold.
What’s next? Will JP Morgan announce they have a gold backed cryptocurrency for global trade settlement… or will it be silver backed?