US banking giant creates new money
It was only a matter of time.
The cryptocurrency explosion has seen many start-up companies establish initial coin offerings (ICOs) as a way to raise funds. The leap into ICOs was as much about dodging the normal security attached to listing on a stock exchange as it was about showing that the business was moving with the times.
Today, Jim Rickards tells you how the world’s first bank-backed cryptocurrency is being launched.
Not just by any old bank, either. But by JPMorgan, with US$2.45 trillion in assets on its books.
Before I hand you over to Jim, I want to leave you with something to chew over today.
Banks are in the business of creating money. So it makes sense that the biggest bank in the US joined the crypto movement.
However, now that banks have the ability to create their own money, how long until it becomes a tool to attract new clients? Rather than offer a loan in fiat currency…will they begin to write loans — at a discount — in their own crypto values?
In other words, you take a loan backed by faith in the bank, rather than faith in government-issued currencies.
As I said, it’s just a thought for you to sit on today.
What happens with a JPMorgan-issued crypto, though, will set a standard that all other banks follow.
And now, it’s over to Jim.
Until next time,