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JPM Coin Handles $1 Billion Transactions Daily: JPMorgan
JPMorgan Chase & Co.’s digital token JPM Coin now handles $1 billion worth of transactions daily and the bank plans to continue widening its usage, Global Head of Payments Takis Georgakopoulos said.
“JPM Coin gets transacted on a daily basis mostly in US dollars, but we again intend to continue to expand that,” Georgakopoulos told Bloomberg Television.
JPM Coin enables wholesale clients to make dollar and euro-denominated payments through a private blockchain network.
It’s one of the few examples of a live blockchain application by a large bank, but remains a small fraction of the $10 trillion in US dollar transactions moved by JPMorgan on a daily basis.
The company also runs a blockchain-based repo application, and is exploring a digital deposit token to accelerate cross-border settlements.
On digital deposit tokens, Georgakopoulos said 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.”
Blockchain industry observer argue they can deliver instantaneous payments at lower cost than current technology. But digital ledgers have yet to be tested at the same scale as existing payment networks.
Nigerians Shift Towards Stablecoins As Naira Continues Its Decline
The usage of cryptocurrencies in Nigeria, particularly Bitcoin and Tether’s USDT, has been steadily increasing, according to the most recent global cryptocurrency adoption study from reputable research organization Chainalysis. The most populous country in Africa has had a surprising 9% gain in cryptocurrency usage over the last two years, despite a bear market for the industry. It is now one of just six nations globally whose transaction volume has increased during this time.
At first glance, the rise in cryptocurrency usage in Nigeria may appear unexpected considering the overall decline in the crypto industry. But it’s strongly related to the devaluation of Nigeria’s national fiat currency, the Naira, which has plummeted by 65% compared to the US dollar since June as a result of the Central Bank’s decision to let the Naira’s exchange rate fluctuate. Nigerian families and companies have begun using stablecoins and Bitcoin to preserve their money and facilitate transactions as a result of the Naira’s devaluation. .
Nigerians have found that stablecoins, in particular, have become a lifeline, helping them to protect their savings and simplify bank operations. The circumstance also emphasizes how important it is for emerging economies to have easily accessible and user-friendly cryptocurrency adoption platforms such as Binance.
US Senators Introduce PROOF Act To Require Proof-of-Reserves For Digital Exchanges
A bill that aims to create protections against another collapse similar to the one that occurred with FTX has been submitted by two U.S. senators from different political parties.
Senators Thom Tillis and John Hickenlooper are the brains behind the Proving Reserves of Others Funds (PROOF) Act. The purpose of the legislation is to prevent the improper mixing of client money and mandate the submission of a proof-of-reserves (PoR) report on a monthly basis by an impartial third-party auditing agency.
The measure mandates that digital exchanges provide minimum account requirements that ensure consumer money. Along with documentation of a company’s liabilities and cryptographic proof of reserves, the law also stipulates a set of civil sanctions, including monetary fines that must be paid upon violation.
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