New crypto prototype unveiled

new york — JPMorgan Chase unveiled a prototype for a digital coin system using blockchain, a first among major banks as disruption accelerates change in finance.

The system, called JPM Coin, which for now is only at the prototype stage and for business-tobusiness deals, would permit institutional clients to make instantaneous payments to other bank clients. The announcement gives a jolt to a leading financial technology that has been praised for boosting efficiency in payments and other bank processes but which is still seen as at least a few years away from widespread application, in part because of the need for regulations.

Lou Kerner, a venture capitalist who invests in crypto ventures, predicted the blockchain technology would affect all industries, much like the Internet.

“Clearly banking and the monetary system is one of the first areas to feel the disruption,” Kerner said. “Every major bank in the world is assessing the situation and developing a crypto/ blockchain strategy. Either the banks disrupt themselves or they let others disrupt them.”

“The crypto genie is out of the bottle,” he added.

Large banks face increased competition from smaller financial tech companies, as well as credit card companies and even retailers like Amazon and Apple who are jostling in with new payment systems. —