You didn’t think the banks were going away quietly did you?
Here is the TL:DR on JPMD stablecoin
Is this a stabelcoin? Another version of JPM Coin?
It’s a tokenized deposit token that will live on the Base blockchain! Unlike stablecoins that are supposed to be backed 1:1 with dollars custodied (or other backing like treasuries), the JPMD is going to represent existing deposits at the bank (commercial bank money ).
What’s the difference?
They’re a bank… they don’t have to have it 1:1 backed, they just need the fractional reserves to meet required deposit thresholds meaning it’s a lot more scalable. What else is intriguing? Potential interest payments (yield).
Here we go! Get ready for the stablecoin wars. The only hope is that this coin is on a terrible chain. And we all know blockchains don’t scale!
This is interesting.
Technically 2020 removed any threshold requirements. So in an ideal world, I would prefer a 1:1 stablecoin.
However the question is: will it be FDIC insured?
Is anyone who holds this coin considered a "depositor" of the bank for FDIC purposes?
Lots of questoins....
Yeah if they are I can see banks looking to move on this and away from debit/credit issuers. Why pay Visa and mastercard when you can undercut them and settle much much faster.
I’m not a fan of banks but they desperately need innovation.
The upper hand that stablecoins issues will have is interest shared with holders.
And that becomes not just a consumer preference but corporate... WWWMD? (What Would Walmart Do) - prefer to hold Tether w/ interest or JPMD
Yeah if anyone wants to compete with tether they would have to give some compensation for using their coin
But corporates they will go with the coin that gets the blessing from US regulators
Don't you even dare giving them the idea of Taproot Assets. Let them just do it on ethereum or some other shitchain.
Hahaha
A JP Morgan stablecoin?? Terra Luna 2.0? ;)
It's strange for me!
Hahaha
Another shit coin 💩
Why would anyone want this shitcoin
People with bank deposits which is most Americans