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Over the past year, there has been a lot of talk about central banks and the foray into central bank digital currencies (CBDCs). This was highlighted in a recent survey by the Bank for International Settlements (BIS), which found that around 80% of central banks are in the midst of CBDC development. However, these central banks aren’t the only ones looking to develop blockchain-based services. Private banks like JP Morgan and others are now joining in the fun.
In a recent frenzy of activity, the following are examples of this taken from various banks, as each seeks to develop different blockchain services.
JP Morgan Chase
Our first example is JP Morgan Chase. It originally announced its plan to create and use its own stablecoin, dubbed “JPM Coin”, about a year ago. Fast forward to October 27, 2020 and JPM Coin is now being used in the real world, by real customers.
In its first use case, JPM Coin is primarily used as a medium for cross-border payments. With fast settlement times and 24/7 access, stablecoins like this one have the potential to significantly save users money on such transactions.
United Multistate Credit Co. & Cashaa
As indicated, the adoption of the blockchain by banks is happening a lot on a global scale. While JP Morgan Chase represents this development in the United States, the second largest nation in the world, India, is experiencing the same.
United Multistate Credit Co. based in India in partnership with Cashaa, has announced that it will soon be offering customers various cryptocurrency-based services. The following are just two of the various services that will be made available.
- Buy / Sell: Bitcoin, Ethereum, Ripple, Bitcoin Cash and Ethereum Classic
- Secured Loans – FIAT loans secured by cryptocurrency holdings
Interestingly, this announcement comes in the midst of a potential “crackdown” on cryptocurrencies within the Indian border by the nation’s central bank. Although no decision has yet been announced, United Multistate Credit Co.’s decision would indicate that a favorable outcome is expected.
DBS
Our third example of the day comes fresh from Singapore. It was recently discovered that DBS, one of the largest banks in Asia, preemptively posted new information online about incoming services by mistake. Although the information has been removed, Internet investigators have had ample time to review DBS’s upcoming plans. These include the following,
- Buying / selling cryptocurrencies
- Custody services through “DBS Digital Custody”
- Hosting Security Token Offerings
These services will provide additional customer appeal, as DBS is regulated by the Monetary Authority of Singapore, which means that users of the services will benefit from higher levels of security and trust.
Sentiment Shift
Interestingly, each of the examples given today represents more than just growth in the blockchain – they represent a significant shift in sentiment and adoption within an industry that has historically been, not impartial, but against technology.
Notably, Jamie Dimon, CEO of JP Morgan Chase, has said in the past that Bitcoin is a “fraud that would have exploded”. The firm’s analysts now recognize the enormous potential behind such cryptocurrencies, noting its growing popularity among the younger generation by stating: “Older cohorts prefer gold, while younger cohorts prefer Bitcoin as an ‘alternative’ currency”
This, combined with the actions of the Supreme Court of India, paints a global picture where traditional banks are not only heating up over blockchain efforts, but rushing to establish new services.
