Recently, JPMorgan announced that it will be launching it's own cryptocurrency named JPM coin. About 2 years ago JPMorgan CEO Jamie Dimon called bitcoin a "fraud" but now is competing with it.
The main appeal and arguably the worst feature of JPM coin is that it is backed by a real world asset, the dollar. One JPM coin will always be worth 1 USD and because of this will be a much less volatile currency than bitcoin however it trades off being decentralized and isn't backed by math and protocols that are virtually immune to change like bitcoin is. JPM coin therefore is a way for JPMorgan to move it's money around for its customers much more quickly than it previously could while keeping the value consistent with the dollar. This crypto offers no advantage other than this over bitcoin and actually has one HUGE flaw.
While JPMorgan was using dollars to fund its users' accounts in conjunction with fractional reserve banking policies that every bank uses, the bank never has all of its accounts money on hand. Now with its own JPM coin they can essentially become their own "federal reserve" and create large amounts of this coin while saying it's backed by dollars.
They can easily do this with dollars as well and they more or less do in fact do this (fractional reserve banking) but now have the option to manipulate their holdings much easier.
Comment if you'd like to add anything and thank you for reading!
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