What big companies think is cool and innovative is always several years behind what actually is cool and innovative. And they always miss the point, in this case what the idea of crypto is.
But big companies are masters of shouting loudly, as in this case where JPMC's PR has gotten this story out in just about every major outlet. Whether this is anything beyond a PR exercise I don't know, I get the feeling there are some quite strong internal forces that will not be interested in actually using this.
Someone I know works for a big 4 that is also roughly at this point in the delayed hype cycle. They are furiously selling blockchain solutions to everyone who will listen, and doing quite well at it. They did a firmwide review of internal skills recently, and amazingly there are zero staff who have any idea what a smart contract is. You wouldn't know if reading about them in the news, but they are getting paid millions and millions for various projects that are currently undeliverable.
JPM thinks a centrally controlled digital currency is better than a public currency. Of course there are benefits to JPM in controlling this currency.
The interesting thing to watch is whether public and interoperable digital currencies prove to be more valuable and useful than a centrally-controlled one.
The world has swung the other way. If I want restaurant reviews, I need yelp/tripadvisor/googlemaps/facebook to access each database of reviews. To order a delivery meal I need ubereats/doordash/grubhub/postmates/amazon. To compare taxi prices, I need to open uber and lyft, and to rent a scooter I need a new app in each city. To send a message I need fbmessenger/whatsapp/skype/hangouts. Even Match Group keeps its subsidiaries as silos, instead of allowing interop. It probably actually INCREASES peoples desire to hop around the different products, knowing they dont work together. If gmail and outlook didnt work, id be more likely to have both. Open standards and interoperability made public networks more useful, but now that the networks are in place, and access is ubiquitous, walled gardens can spring up and dominate MUCH faster than distributed protocols.
And personally, how do you suggest distributed protocols work to keep up with their centralized alternatives? Obviously one could build a walled garden (UI, API, Database) much quicker than its decentralized alternative.
The quickest to market car isnt always the best or safest product. Consumer safety laws even the playing field a bit. Im not advocating regulation, but it is one way to achieve more parity between products.
Being able to not transact large amounts of money and instead using a permissioned blockchain to prove you have the funds seems like a great use case to me.
Although mining some ether was fun as was making money on bitcoin, I believe that the really interesting applications will probably be in permissioned systems that either like JP Coin allow virtual transactions or support smart contracts. To get started, taking the eDX course on blockchain for business is a good start.
I also admit that after working as an AI/machine learning practitioner since the 1980s that blockchain applications interest me just because it is something new (for me).
Furthermore to say that interesting applications will emerge in permissioned blockchains is akin to saying ever since 2010 Neural networks will make a large impact. It may be true but NNs have been around for decades while Permissioned Blockchains (i.e., distributed ledgers) have also been around for decades. They are merely; append only, distributed, permissioned data structures/bases that have some level of throughput and information guarantees
Check it out
I see this eventually becoming a fairly serious issue with the fed, if this takes off.
To which I would add airline miles, gift cards, and postage stamps.
The distinction to commodities is only relevant for some questions around taxation, accounting, and investor protection.
I don't have too much to say besides I'm curious how things will develop around this over the coming months.
Is this a hipster daemon written in Go? :)
 man systemd-paymentsd
Lol, I guess it's only worthwhile when they do it?
Lots of trading happens around banks being asked by customers to provide exposure to stupid things. If your ambition is to be a big bank to everyone, you’ll have to learn to accommodate such requests. Being able to say “I’ll help you do this, but I don’t recommend it” is part of the trade.
Pegged value, privately controlled, governance and oversight built in, no PoW, no speculators. Effectively all it has in common with BTC is the ability to send payments from one account to another.
"There are two reasons for any action: the reason that sounds good and the real reason."
They are only doing so because it saves them a ton of money.
This is less about cost savings and more about lock-in and liability. Customers can move their money around by wire or ACH with anyone. They can only do it with JPM coin through JPMorgan.
With such treasury services, moreover, fraud is a big cost centre. A cryptocurrency might be a good way to shift liability for unwanted transactions away from the bank and onto customers.
"The blockchain potential in financial services is huge, and has several applications which span across payments, capital markets, trade services, investment and wealth management, securities and commodities exchanges.
Blockchain technology can be considered as one of the main drivers to achieve a substantial cost saving.
According to a Santander FinTech study, distributed ledger technology could reduce financial services infrastructure cost between US$15 billion and $20 billion per annum by 2022, providing the possibility to decommission legacy systems and infrastructure and significantly reduce IT costs."