Tonite on the Bob Pritchard Radio Show, I interview Philip Kotler, the father of modern marketing who has written more than 70 marketing books. Join Philip and I on tonites show.
Wells Fargo has made it official: Big banks are getting in on cryptocurrency. Wells Fargo is launching a US dollar-linked stablecoin, making it the latest financial titan to get in on cryptocurrency.
Wells Fargo’s proprietary digital ledger technology, Digital Cash, will allow users to move money internally across the firm’s global network in “near real-time.” JPMorgan’s JPM coin, based on blockchain technology, is intended to “make instantaneous payments using blockchain technology.” You may recall JPMorgan’s CEO, Jamie Dimon, said in late 2017 that bitcoin was a “fraud.” He later regretted the comments.
Each JPM Coin has a value equivalent to one US dollar; digital currencies tied to fiat currencies have come to be known as “stable coins.” When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time to near instantaneous. The bank said that over time, JPM Coin will be “extended to other major currencies.”
JPMorgan has long shown interest in the potential of blockchain technology. In 2015 it joined a consortium of banks led by New York-based fintech R3 looking to create standards and protocols around how the blockchain could be used in banking. In March 2018, JPMorgan was considering spinning off Quorum, it’s internal blockchain project and the one the JPM Coin will be issued on, in an effort to achieve greater industry adoption.
It’s likely that all other banks will follow suit with tokens and networks of their own.
So… why are the major banks going crypto? The unregulated nature of cryptocurrency networks created concerns that it would enable tax evasion, money laundering, and other darknet activities. But banks have discovered that blockchain-based technologies allow instantaneous payment transfers. And in an increasingly global economy, this is especially attractive because businesses can move funds outside of normal operating hours while cutting the time and costs associated with such transactions and eliminating the need for middlemen.
When Bitcoin began in 2009 every major investment bank said it was a bust and not to invest in it. Today, big banks are all over cryptocurrency and blockchain. The traditional way of making money and invest in assets has changed and huge financial firms recognize it. Steve Chiavarone, portfolio manager at Federated Investors declared that blockchain will lead the way and eventually create the fourth industrial revolution.
Major corporations overseas have began securing their company and their assets using blockchain. Even governments, for example Mexico, have begun using blockchain as a way to decrease corruption and make monetary transactions safer. Bank of America possesses the most live patents in the blockchain space. Citigroup launched a number of overwhelmingly positive trials to see how efficiently the technology tracks down credit default swaps.
In the international banking sector, many banks have invested heavily in the technology and, for the most part, have skipped the obstacles that the United States has imposed on cryptocurrency and blockchain. The Bank of England has been one of the most important players in embracing the power that the technology of blockchain has to offer. Hong Kong and UK based bank HSBC and Germany’s Deutsche Bank made an important deal with technology giant IBM last year. Switzerland has many important banks investing in cryptocurrencies and blockchain.. UBS has been a key component in introducing Blockchain and cryptocurrencies to other major banks and foreign conglomerates. Huge Spanish banking giant BBVA, made a considerate investment in the cryptocurrency trading platform.
Blockchain and cryptocurrency has arrived.
I went to the bank and swapped 100 grapes for 50 raisins. Not sure about the currant exchange rate.