For years, Big Tech has been edging in on financial services, largely without the regulatory constraints befitting a bank or credit union, despite operating similar services.
But that may all come to an end soon if the CFPB’s latest proposal comes to pass.
One of the big appeals of digital currencies has been it’s programmability. Being able to bake in rules for a currency opens out a whole world of possibilities.
The crypto world has used this capability for some time, and with more traditional finance figures eyeing up digital assets, it was just a matter of time before one took the plunge.
As one of the largest and most influential financial firms in the US, it is perhaps unsurprising that JP Morgan would be the one to do it. Today, the company announced that they had added a programmable payments feature to their private permissioned blockchain-based JPM Coin.
So what does this mean? Well, in short, it’s a great day for automation. Companies who use the JPM Coin can program automatic payments based on the parameters they choose.
Examples (given by JP Morgan) of why you would want to do that include earning more income on interest-generating deposits, eliminating the need for standing orders, and automatically shifting funds to cover margin calls.
Apparently, Siemens AG is already using the capability and has created accounts that automatically transfer funds to avoid shortfalls. And this is just the first thing they plan to use it for…
JPMorgan Adds Programmable Payments ‘Holy Grail’ to JPM Coin
By Decrypt AI, Edited by Stephen Graves
The new feature enabling the automated transfer of funds has already been employed by German firm Siemens AG.
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