Move over, bitcoin.
JPMorgan Chase (JPM - Get Report) will issue the first ever cryptocurrency by a U.S. bank, marking a significant change in tack for CEO Jamie Dimon, who once threatened to fire any employee he found trading bitcoin, reported TheStreet's Martin Baccardax.
The new digital currency will be redeemable for one U.S. dollar each, CNBC reported, and will be used to develop the bank's payments business over blockchain technology. Once the issued coins are spent through the payment system, they will be destroyed and redeemed for the same value as they were purchased, according to CNBC.
Kenny Polcari, managing principal at Butcher Joseph Asset Management, weighed in on how the launch of JPMorgan's cryptocurrency could impact markets.
He focused heavily on what it means for bitcoin and blockchain. The JPMorgan currency will be redeemed on one U.S. dollar, making it more stable and not as vulnerable to drastic swings as bitcoin has been in the past.
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