Almost two years after taking a swipe at Bitcoin, calling the digital asset a fraud and worse than tulip bulbs, JP Morgan Chase chief Jamie Dimon announced on Feb. 14 that the bank had launched its cryptocurrency known as the JMP Coin.
The news met mixed reactions from the crypto community, some believing that it was a great step forward for the industry as a whole while others think that it doesn’t mean much as long as it is confined to the bank’s transactions only.
Tim Draper Reacts to JMP Coin
The announcement comes as a big surprise to many who believed that Dimon is against the new technology.
— Neda Aarabi (@nedaa990) February 18, 2019
However, others embrace the news and believe that the addition of the new coin to the industry is interesting.
Billionaire and Bitcoin investor Tim Draper, who has spent millions investing in Bitcoin said the announcement of the JMP Coin is “great news” for the crypto industry.
In an interview with FOX Business on Feb. 17, Draper said:
“Not many Bitcoin knock offs have worked particularly well, but they all add to the interest in bitcoin.”
Draper is a venture capitalist who has made bets in big companies such as Tesla, Hotmail, and Skype.
The venture capitalist has invested a huge amount of money in Bitcoin because he believes that its underpinning technology, the blockchain, will be an integral part of the new virtual world.
The JMP Coin will be pegged to the USD on a one-to-one ratio but will only be used on the bank’s payment system.
Bitcoin and the Future of Money
Draper has previously stated that cryptocurrencies are set to change a lot of things at a bigger scale than the internet.
Last May Draper said:
“This is going to be the biggest change in the history of the world and it’s so exciting. I thought the internet was super exciting, but this is going to completely change everything and the government itself is going to change.”
He said that the future is Bitcoin and it will be the new store of value.
“Over time, when they start taking bitcoin, I’m going to be pretty much-moving everything [out of the banks]. There is no reason to hold on to shells when you’ve got gold.”
The price of Bitcoin has declined considerably since reaching its peak of more than $19,000 in December 2017.
However, Draper believes that the world’s largest cryptocurrency by market capitalization will bounce back and reach a high of $250,000 in 2022.
The announcement of the JPM Coin did not have a direct impact on the price of Bitcoin or the wider cryptocurrency market.
The crypto market, which has endured a protracted bear market since the beginning of last year, has seen some major gains since Feb. 18.
Bitcoin was trading in the $3,600 region a week ago but has now climbed to $3,900.
It remains to be seen if the bull run will continue for some time.