JPMorgan Just Killed the Bitcoin Dream

About a decade ago, a group of anarcho-capitalist coders rallied around the utopian notion that the digital protocol developed by the pseudonymous Satoshi Nakamoto would one day create marginal efficiencies for JPMorgan Chase ’s back-office operations.

Well, not really. Blockchain and Bitcoin were, of course, initially supposed to allow individuals to send each other cash without any state or company standing in their way.

Three Ways Blockchain Will Revolutionize Finance
Three Ways Blockchain Will Revolutionize Finance
Blockchain technology promises to transform finance the way the internet transformed communication.
But that dream is now effectively dead, and blockchain is now fully into its boring phase. The latest and most telling evidence of this arrived this morning, when JPMorgan (JPM) said it had developed and tested a prototype of a digital coin.

JPMorgan’s coin rollout also says something about the broader state of technology in the current economy. Tech’s promise is no longer about replacing middlemen. It’s about middlemen using technology to entrench their profitable position.

The coins, the first of their kind created by a U.S. bank, are a form of an internal stablecoin, meaning they have a constant value equivalent to one U.S. dollar. ..Read More..

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