JPMorgan May Create a Virtual Currency That Rivals Bitcoin

The megabank tries to get in on the virtual cash craze

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Mark Lennihan / AP

JPMorgan Chase has filed a U.S. patent application for a computerized payment system that resembles the virtual currency Bitcoin, the Financial Times reports.

As more people make their purchases online, banks, credit card companies and tech companies are all hoping to capitalize on the quickly expanding business of mobile and online payments. Bitcoin rose this year as the most prominent virtual cash system, storing its users’ cash in computer files. The price of Bitcoin shares soared to over $1,240 the day after Thanksgiving (a 9,000% gain for the year), and its new virtual currency may one day challenge the traditional payment systems of big credit card companies and banks.

JPMorgan’s patent application (which was updated from a 1999 version) says that its new payment system will compete with with credit and debit cards for online transactions. It mimics a few features from BitCoin: JPMorgan’s system involves creating “virtual cash” that will sit in an online wallet. Each transaction will be saved in a public record of transactions, similar to Bitcoin’s “blockchain.”

MORE: I Bought Everything on My Christmas List with Bitcoin

[FT]

6 comments
Yakesh
Yakesh

Bitcoin is the biggest scam this year as there is no tangible guarantee to back it up. This news does mention about Bitcoin going up but does not mention steep fall and likely crash. Virtual cash already exists through credit cards and online payments. Why do you need BITCOIN ? People hoarding Bitcoins have created hype by releasing calculated news that big names are investing in it. Good luck to them.



JailBanksters
JailBanksters

What a great Idea.

The US already has the Virtual Currency (USD), and this would be a Virtual Payment System.

But I'm pretty sure Zynga already has a patent on Virtual Currencies and Payments with Farmville.


vrome
vrome

A principle advantage of BitCoin is that it isnt tied to a bank.

jasonrobertfox
jasonrobertfox

@Yakesh You either think it's a scam if you have 1) lost money on it or 2) not gotten in early. Please enlighten me as to what "tangible guarantee" backs up fiat currency. The point is that BitCoin and others like it are decentralized, and so you don't need banks, or fees.

bjamin_bunker
bjamin_bunker

Agreed - if anyone is missing the point here it is clearly JP.