JPMorgan Chase & Co. is expecting its digital token, JPM Coin, to process $10 billion in daily transactions in the upcoming year.
This projection comes from the insights shared by Umar Farooq, the bank’s Global Head of Financial Institution Payments in an interview with Bloomberg at the Singapore FinTech Festival.
JPMorgan Expects Tenfold Increase in JPM Coin Transactions
Farooq expressed optimism about the potential for JPM Coin, highlighting the anticipation of a five to tenfold increase in transaction volume. Emphasizing the coin’s impending popularity, he stated, “We really think it’s going to start taking off.”
As reported earlier, JPM Coin currently handles approximately $1 billion in daily transactions, mainly in US dollars, according to Takis Georgakopoulos, JPMorgan’s Global Head of Payments.
Despite this substantial volume, it represents only a fraction of the colossal $10 trillion in US dollar transactions managed by the banking giant daily.
JPM Coin facilitates secure and efficient dollar and euro-denominated payments for wholesale clients through a private blockchain network. The banking giant is looking to expand the token’s usage.
While proponents of blockchain technology argue for its potential to deliver instantaneous payments at lower costs, the real-world scalability of digital ledgers remains a topic of ongoing exploration.
The bank’s official further revealed that the “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.”
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