JPMorgan is officially talking to a few music NFT media about allowing fiat payments.
While JPMorgan has already allowed tokenized US dollar deposits with JPM Coin, it now has plans to allow blockchain-based Euro deposits.
As for the JPM Coin, Basek Toprak, head of Coin Systems at Onyx by JPMorgan highlighted the distinction between programmable payments (that are currently in use) and blockchain-based programmable payment. For corporates, several banks have already proposed trigger payments associated with blockchain.
Tokenized money on blockchain gives way to efficiency as its works as a ledger of value, allows the movement of money, and backs programmability. The distinction with the present class of money, which is used electronically in a bank database with different payment fences to exchange money leads to inefficiency in cash flow between the ledger and the rails.
Blockchain, on the other hand, destroys the idea of reconciliation because both parties are allowed to share the ledger.
Another topic that should be emphasized for the feasibility of payments in traditional as well as unconventional systems is the significance of smart contract programmability. While programmable money should be able to handle difficult circumstances to initiate payments, it should be made simple to reduce mistakes. Toprak’s coin system explained a route to public blockchain payments as an ever-growing circle, at the center of which, JPM Coin will essentially enable payments through a shared ledger with the bank.
Meanwhile, the multinational banking giant is also creating a payment opportunity for Non-Fungible Tokens. According to Brody Mulderig from the Fintech department at JPMorgan, the technology at present is not very easy to adopt for the vast majority. Mulderig explained how he has himself crossed every barrier to actually purchase an NFT. According to him, if a person is not already trading crypto, they will have to move money onto a crypto exchange, which will introduce tons of new problems. People are also susceptible to phishing fraud and the hazard of losing assets.
There are, however, some customer-centric NFT applications that have tried to make the tedious process more facile. Dapper Labs and Sorare top this list.
JPMorgan is officially talking to a few music NFT media about allowing fiat payments. It’s also peeking at the possibility of Web3 from a broader perspective, seeking to enclose most of the applications that won’t officially associated with finance. Major Blockchain financial applications prevail under JPMorgan’s Onyx department, which also comprises Onyx Digital Assets with an intraday DLT repo application. The company is also testing JPM Coin on a public blockchain under the Project Guardian, its Singapore Decentralized Finance experiments with the Monetary Authority of Singapore.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
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