JP Morgan creates first US bank-backed crypto-currency
US investment bank JP Morgan has created a crypto-currency to help settle payments between clients in its wholesale payments business.
JPM Coin is the first digital currency to be backed by a major US bank.
The crypto-currency, which runs on blockchain technology, has been used successfully to move money between the bank and a client account.
JP Morgan says it sees potential in using digital coins to reduce risk and enable instant transfers.
Although JP Morgan's chief executive Jamie Dimon has publicly criticised Bitcoin - the first crypto-currency in existence - on several occasions, the bank says it has always "believed in the potential of blockchain technology".
"We are supportive of crypto-currencies as long as they are properly controlled and regulated," Umar Farooq, JP Morgan's head of Digital Treasury Services and Blockchain, wrote in an online Q&A page.
How do crypto-currencies work?
Virtual currencies can be used to pay for things in the real world, such as a hotel room, food or even a house.
Digital tokens are held in online wallets, and can be sent anonymously between users.
For this reason, crypto-currencies are attractive to people who want to make illegal purchases on the Dark Web - a part of the internet that is not indexed by search engines.
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