JP Morgan, the largest bank in American, had launched its own cryptocurrency JPM Coin a few weeks back. The announcement was met with a lot of criticism and trepidation after reports showed that JP Morgan’s CEO, Jamie Dimon, was a big critic of Bitcoin [BTC] and other cryptocurrencies.
Recently, Anthony Pompliano, on his Off the Chain podcast, gave his views on the upcoming cryptocurrency and its proclaimed uses. The cryptocurrency is based on a private blockchain and backed one-to-one by the US dollar. Pompliano stated:“When Mr. Dimon was recently asked about the future prospects of JPM Coin, he said that it could one day be used by retail consumers for everyday commerce. This is a fairly significant change from the original talking points in the launch announcement.”
The Bitcoin proponent and co-founder of Morgan Creek Digital Capital was of the opinion that JP Morgan has a more audacious plan in the pipeline. In his words:“…JP Morgan is going to try something so audacious that we should be offended that they would even try it. Let’s call it the Printing Press Playbook.”
He stated that JP Morgan’s coin will be successful and the bank would start offering JPM Coin to institutional clients and peers for transactions. Pompliano then claimed that as the institutions begin adopting JPM Coin, the bank will start pushing customers and retailers to use the digital currency for everyday transactions. He continued:“Once JPM Coin is widely adopted, JP Morgan comes up with a clever reason to temporarily diverge from having every JPM Coin backed by a US dollar (just as the Nixon administration said the US dollar would temporarily break from the gold standard in 1971).”
In his blog post, Anthony Pompliano further added that the bank will then get full control over a digital currency that has “little transparency and a high degree of adoption”, which will then see the bank creating more and more JPM Coins out of thin air.
The co-founder was against the idea of JPM Coin’s implementation and concluded:“We should do everything in our power to prevent this from happening. The US government is already questioned quite aggressively about monetary policy decisions, so imagine if we had to trust a Wall Street bank that was previously charged with a felony.”