JPMorgan recently patented a payment system that is supposed to be very similar to Bitcoin, which is the digital currency that has caught a lot of buzz in recent years. The new payment system that is in the works from JPMorgan could definitely rival and supersede Bitcoin, but only if it can prove to be more secure. Bitcoin is a form of digital currency that was created in 2009 by a developer under the pseudonym Satoshi Nakamoto. It is used internationally, and can help countries with unstable currencies find an alternative form of payment to avoid the repercussions of a failing economy.
Today, the United States, Canada, China, and Germany are amongst the many countries that recognize Bitcoin as an official form of payment.
Proper security is a must
Bitcoin does not necessarily have a positive reputation as a safe and secure form of digital currency. All a person needs to see is the QR code provided when obtaining it and they can easily steal the digital currency. The fact that this currency is so easy to steal, and was even stolen on television, shows its vulnerability.
The new digital currency from JPMorgan needs to be more secure than Bitcoin for it to gain positive recognition. If it is not somehow protected more than Bitcoin, it won’t have much more success. JPMorgan needs to note Bitcoin’s downfalls and use that to their advantage to make their digital payment system better.
Taint of Bitcoin
Bitcoin is tainted by the fact that drug transactions are made through the digital currency every day. Earlier this year the FBI seized $28.5 million in Bitcoins after completing a drug bust and shutting down the most popular drug-selling website on the Internet.
The website was able to keep buyers and sellers anonymous by using Bitcoin as its main source of currency. That has made it a far less desirable form of payment. People may be hesitant to use the new digital currency from JPMorgan because of the taint Bitcoin has by being used as a form of payment for drugs and other illegal transactions. Those that use digital currency as a form of payment may be put in question as to why they would opt to use this form of payment as opposed to another. So using digital currency can raise unnecessary suspicion that is not needed.
JP Morgan may change the game
The reputation of JPMorgan may help the success of the digital payment system it has in the works. Bitcoin was not created by an actual authoritative and reputable financial entity like JPMorgan. That could very well make the new digital currency appealing to people interested in this form of payment.
If JPMorgan can find a way to prove the new digital currency it has in the works is more secure, safe, and stable than Bitcoin, then it may very well rival and win as the best form of digital currency.