Chargebacks911® COO’s Monthly Column for Grit Daily Takes a Look at JPM Coin
For her monthly column on entrepreneurship site Grit Daily, Chargebacks911 COO Monica Eaton chose to weigh-in on JP Morgan’s latest move to shake up the banking industry.
JP Morgan made news in the payments and finance sectors in early 2019 by announcing plans for their own digital “cryptocurrency,” the JPM Coin. Unlike well-known crypto coins like Bitcoin, JPM Coin will be a carefully-controlled, internal token used by JP Morgan. With JPM Coin, the bank can enable instantaneous payments, better recordkeeping, and deliver other benefits to customers.
As Monica points out, utilizing a blockchain system—the technology that powers JPM Coin—is actually much safer than other, more conventional payment methods.
ACH payment clearing has an error rate north of 10%. “The percentage translates to billions lost each year through misdirected payments, clerical errors and the cost of corrections (assuming corrections are even possible),” Monica explains. “Therefore, security is a big part of the conversation, too.”
“I understand it seems counterintuitive that an open, unmanaged record could be more secure and accurate than existing payments technology,” Monica continues. “However, that openness is one of blockchain’s great strengths,” referring to the fact that, rather than trying to maintain a consensus among multiple records, a blockchain allows multiple points of access to a single record.
