Chase-ing Bitcoin: Is JPMorgan Preparing To Unveil Its Own Electronic Currency? - Trading stocks, futures, options and other exchange instruments

thenews 2013.12.10 17:00 #51

Chase-ing Bitcoin: Is JPM Preparing To Unveil Its Own Electronic Currency?

f you can't beat 'em, join 'em, copy 'em, and then beat 'em. While everyone's attention has been glued to Bitcoin (and its various smaller and less viable for now alternative digital currencies), JPMorgan has submitted a patent which appears to set the scene for a competing centralized network to Bitcoin. As LetsTalkBitcoin noted first, the "Method and system for processing internet payments using the electronic funds transfer network," states that Chase's technology is a "new paradigm." Moreover that it permits the creation of "virtual cash" (also referred to as "web cash") with a "real-time digital exchange of value."

Via eCreditDaily,

Imagine paying for some product in a transaction directly with the seller that doesn’t include a costly third-party fee or the revelation of a personal account number — the current components that comprise credit card and debit card purchases. Imagine this system with a “real-time digital exchange of value.” And imagine that you can archive all the transactions in a personal digital wallet, with its own “Internet Pay Anyone (IPA)” account and inherent safeguards built-in, something that you could call “Virtual Private Lockbox (VPL),” according to JPMorgan’s patent.
If this “web cash” system — as JPMorgan Chase calls it — seems familiar, it should. It smacks of the peer-to-peer transactions of bitcoins and other cryptocurrencies that increasingly are making the world’s biggest banks uneasy about the future of e-commerce.

The patent, first revealed by LetsTalkBitcoin.com, is a fascinating look into JPMorgan’s veiled outlook on the evolving but growing bitcoin universe, and other more widely-accepted payment systems.

JPMorgan’s proposed system offers another eerily familiar component, which seemingly mimics “blockchain,” a publicly available, permanent ledger of bitcoin transactions.

...

Without naming the virtual currency or any competing payments system by name, the bank takes a swipe at the crytocurrency model.

“None of the emerging efforts to date have gotten more than a toehold in the market place and momentum continues to build in favor of credit cards,” according to Chase’s patent application published by The United States Patent and Trademark Office (USPTO). It was filed August 5th, 2013.

...

JPMorgan Chase sees “a new marketplace” emerging for “low dollar, high volume, real-time payments with payment surety for both consumers and producers.”

As LetsTalkBitcoin.com points out, “Bitcoin has also been ballyhooed for it use with micro-payments and payments under ten dollars due to its zero to negligible fee structure.”

JPMorgan Chase: “The present invention further enables small dollar financial transactions, allows for the creation of ‘web cash’ as well as provides facilities for customer service and record-keeping.”

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techmac 2013.12.11 20:30 #55

Now each and every bank is going to issue its own money?

We are going 200 years back. 200 years ago it was done by very similar thieves it is going to be done this time too and it did not end good for the ones that believed the stories like the one JP Morgan is telling now. Incredible that it can happen in the 21st century again

Madoff, other felons say Eurusd/gbpusd EURUSD - Trends, Forecasts

pavaka 2013.12.12 01:19 #56

they use bitcoin......................... fiatleak - watch the world's currencies flow into BTC in realtime

techmac 2013.12.12 12:01 #57

Pava:
they use bitcoin......................... fiatleak - watch the world's currencies flow into BTC in realtime

Can not access the page

pavaka 2013.12.12 13:20 #58

they took it down...but it was very informative...China is getting huge amount of bitcoins...

techmac:
Can not access the page

techmac 2013.12.12 13:36 #59

Pava:
they took it down...but it was very informative...China is getting huge amount of bitcoins...

They were fast

thenews 2013.12.12 14:17 #60

Fact, Fiction, And 11 Bitcoin Myths

Haters gonna hate, but the “Bitcoin bubble” meme has become the financial equivalent of a viral online cat video – wildly popular but pretty vacuous. In an effort to separate fact from fiction, ConvergEx's Nick Colas reviews 11 bitcoin myths (and dispels them). Still, there’s no doubt that the public is entranced: there are now 3x more Google searches for “bitcoin” than “Western Union”, and 33x more than for “Gold coins”. We started writing about bitcoin back in February because it was – and still is – a fascinating invention (for better or worse). How it plays out, we will just have to wait and see.

Via ConvergEx's Nick Colas,

In the spirit of the old high school essay question about the Holy Roman Empire, consider the following query: bitcoin is often described as an online crypto-currency, even though it is none of these things – discuss. The Cliff Notes suggested essay outline might go something like this:

Bitcoin doesn’t have to be just “Online.” There are meetups in parks around the world where you can bring your cash, hand it over to a guy or gal with a smartphone, and watch your Benjamins get deposited to an online bitcoin wallet.

The “crypto” part is also only partially correct. Yes, at its core the bitcoin system runs as a piece of open-source puzzles which individuals and businesses try to solve. The winner gets 25 new bitcoins for their trouble, currently worth about $23,000. Not bad, but the genius of the system is that everyone playing the puzzle must also register all bitcoin transactions that occur in the 10 minutes it typically takes to solve the puzzle. Those are also all visible to the system, but by forcing everyone to keep track and reconcile at the end of the 10 minute window, the chance of double-spending the same bitcoin is very low. Bottom line: you don’t need to know how to code to use bitcoins.

“Currency”… This is actually the hardest part of the question. Currencies exist primarily as a way for societies to avoid having to barter goods and services. It is much more efficient to hand over a $10 bill for dinner rather than contract with the restaurant owner to wash dishes for your meal. There are some places to spend bitcoin – a simple web search will find them. But the most accurate thing you can say about bitcoin as truly useful currency is ‘Not yet’.

We’ve been writing about bitcoin since February 2013 because we thought it was a remarkable and intellectually elegant solution to one key social problem: it simply costs too much money to move money. Want to send $100 to a friend in Argentina by Western Union? That will set you back $12. How about paying for a $1 bag of chips with a credit card in the US? Good luck with that – you’ll likely have to buy a 10 pack to meet the card minimum at the store. We had no idea the value of a bitcoin would skyrocket from our first report at $31 to about $900 today. We just thought it was cool.

Still, with all that capital appreciation comes a lot of misinformation. Part of that is understandable – bitcoin is new and very different from traditional notions of “Money”. Still, in the rush to understand what bitcoin is – and isn’t – the public discussion on the topic has gotten a bit muddy.

We use Bitcoin ;) - page 6