JPMorgan moves in on Bitcoin?

The bank this August filed a patent application for a computerized payment system allowing people to make anonymous, electronic payments over the Internet without having to reveal names or account numbers, or pay a fee.

Banks, credit card operators, Google, Apple and PayPal all want a piece of the fast-growing mobile/Internet payments business, but this technology looks to be borrowing at least some aspects of Bitcoin as JPMorgan's (JPM) system involves creating "virtual cash" which would sit in an online wallet.

“While new internet payment mechanisms have been rapidly emerging, consumers and merchants have been happily conducting a growing volume of commerce using basic credit card functionality,” says the bank in its application. "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.”


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Comments (15)
  • Christopher Mahoney
    , contributor
    Comments (1288) | Send Message
    Sounds like a Bitcoin killer, but I doubt that the bank regulators would permit it.
    10 Dec 2013, 01:43 PM Reply Like
  • King Rat
    , contributor
    Comments (1610) | Send Message
    I agree although in the off chance that regulators did allow it, other virtual currency would be legitimized. Unless of course the "anonymous" aspect mandated forgiveness of NAS, FTC, FCC, SEC, DOJ, and FBI snooping in order to maintain legality. In that case Bitcoin would be banished.


    The whole virtual currency fad will hopefully end soon. What is the point of a currency that requires initial purchase in dollars, has no intrinsic value, and can be erased or stolen without recourse to the victim?
    10 Dec 2013, 02:06 PM Reply Like
  • User 573348
    , contributor
    Comments (33) | Send Message
    For us, Bitcoin and Coinbase seem to solve a real problem for us in how we pay our Filmmakers and Bloggers in developing countries:

    10 Dec 2013, 03:44 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11168) | Send Message
    Money in your hand or the "cloud":


    With which do you feel more safe and secure when it comes to your currency?
    10 Dec 2013, 02:23 PM Reply Like
  • JessePinkman
    , contributor
    Comments (159) | Send Message
    I want a virtual Beanie Baby
    10 Dec 2013, 05:58 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9489) | Send Message
    How long before JPM or some other bank figures out a way to hoard bitcoin-like patents?


    How long before some "rogue" bitcoin trader from JPM is arrested for unethical bitcoin trades?


    How long before Jamie Dimon says that he knew nothing of what took place?


    Stay tuned. This could be really interesting.
    10 Dec 2013, 06:03 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
    Any bank legitimized cryptocurrency would have much better odds of adoption than something open-source.


    These currency models just benefit from scarcity, and derive value from the access they are paid.
    10 Dec 2013, 06:35 PM Reply Like
  • Axien86
    , contributor
    Comments (50) | Send Message
    AMD (Advanced Micro Devices) makes the scrypt based mining Radeon GCN GPUs that have created a significant amount of crypto currency (more than a multiple of Nvidia and Intel combined), so any financial institution may want to consult with them.
    10 Dec 2013, 08:15 PM Reply Like
  • Tufenk
    , contributor
    Comments (935) | Send Message
    This is absurd. The Bitcoin concept is already in the public domain. There is no way any meaningful system that resembles Bitcoin can be patented now that the cows have left the barn. Fighting Bitcoin is like fighting Napster: Napster was the prelude to iTunes et al and the reconfiguration of the music industry. $JPM just legitamized Bitcoin.
    10 Dec 2013, 10:24 PM Reply Like
  • User 573348
    , contributor
    Comments (33) | Send Message
    Very interesting analogy, and I agree,
    11 Dec 2013, 10:40 AM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3554) | Send Message
    I think what JP Morgan is trying to do is just find an alternative system for billing electronically, which rivals credit cards, instead of creating an alternative currency (or by the interpretation of the Chinese government - a commodity) like a crypto coins.


    Certainly though it could copy the crypto coin concepts of infrastructure, anonymity, and security.


    Crypto coins may become the equivalent of commodity futures, multiple currencies which all have personalities and live along side each other as baskets of commodities currently do.


    Of course, I thought Intel would finally get a la carte video delivery going into the living room, but I was wrong on that one.
    11 Dec 2013, 03:47 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
    Agreed, this may be an attempt to make the payment system more competitive.
    12 Dec 2013, 01:18 PM Reply Like
    , contributor
    Comments (3) | Send Message
    sooner or later Bit coin will get in its end because its abnormal to trade with something which doesn't have intrinsic value.Imagine that we are using a virtual currency. The only way to keep this in the market is to give it some real value.In this way it will be also possible not to be hacked. BUT I AM SURE FUTURE NEWS ABOUT BIT COIN WILL SURPRISE ALL.
    11 Dec 2013, 08:11 AM Reply Like
  • Tufenk
    , contributor
    Comments (935) | Send Message
    Ever since we left the gold standard, all currencies are "virtual", meaning they are backed by full faith & credit of the institution behind it and not much else.There are very few sovereigns that have a balance sheet which can be trusted. Bitcoin seems to be immune from "full transparency" issues by remaining cloaked in anonymity. The Bitcoin phenomena is powerful, very powerful like Napster was and this may be its worst enemy or.......
    12 Dec 2013, 01:26 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
    I wouldn't think currency values are supposed to fluctuate so wildly?
    12 Dec 2013, 01:19 PM Reply Like
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