Read more: Coin rotation paradox – Wikipedia
But soon after JPM Coin went live, regulators began calling, said a person familiar with the matter who was not authorized to speak publicly. They worried that the motion of the coins around the fiscal organization could cause a buildup of risk because they were tied to the dollar, sparking a panic and leading to the twenty-first century adaptation of a bank play. The trust had to cut back on the telescope of JPM Coin ’ south habit. now, JPM Coin can not be used to transfer value outside JPMorgan ’ s home systems. Bank customers can use it to move dollars and other assets rear and forth inside the trust about instantaneously, but it is meaningless in the wide world. Regulators have besides trained their sights on smaller banks trying to build cryptocurrency businesses. In 2018, the New York-based Quontic Bank, with just $ 1 billion in assets, asked the acme U.S. bank governor, the Office of the Comptroller of the Currency, for feedback on its plans to launch a debit calling card platform that gave customers rewards denominated in Bitcoin.