The newly launched cryptocurrency by JP Morgan Chase Investment Bank has been a subject of controversy within the blockchain ecosystem. While some proponents of the emerging technology see this as a step forward towards mainstream adoption, some others hold their reservations concerning the fundamentals behind this particular product.
What Makes A Cryptocurrency?
Blockchain and cryptocurrency has been popular for their specific properties that enhance decentralization and the ability to neutralize the monopolistic ideology that is motivated by centralized control. This technology has so far been celebrated as the eventual emancipation tool that will free humanity from the powers that be.
However, considering the procedures and adopted style of the recently launched cryptocurrency by JP Morgan, it does not seem to coincide absolutely with the basic properties of cryptocurrencies. Considering the fact that it remains censored and undergoes a centralized governance, some see it simply as a tokenized distributed ledger.
What makes a cryptocurrency in its actual sense is the underlying protocol and democratized governance. Therefore, any system that does not obey these fundamental principles is not welcome by many as what they assume to be the eventual “money” of today.
A Lesson To Be Learned
The CEO of Kurecoin, Abikure Tega has encouraged banks in Africa to emulate JP Morgan by considering the adoption of cryptocurrencies into their operational methods. Such banks like Guaranty Trust Bank (GTB), Zenith Bank Plc , United Bank Of Africa (UBA) among others have been called upon by Tega to begin looking into ways of creating their own cryptocurrencies. However, he warns against them making the same mistake as JP Morgan by not following the fundamental principles of blockchain technology.
African banks must pay serious attention to the fact that a cryptocurrency is a financial solution that can only exist on the basis of a blockchain technology. Whenever these banks are set to create and list their own cryptocurrencies they need to consult with experts in the blockchain industry in order not to make the same mistake as JP Morgan. I am certain that JP Morgan will come back to correct this mistake soon. – Tega
Creating A Friendly Environment
Tega encouraged the responsible government agencies to learn from Malta, a nation that has taken a very progressive approach towards cryptocurrencies. Malta is commonly described as the Blockchain Capital. The country has positioned itself as a global leader in cryptocurrency regulation. This makes Malta a friendly environment and home for so many cryptocurrency startups. Tega notes that Africa must learn from this in order to become technologically relevant.
The ongoing technological revolution that is led by blockchain is systematically encroaching into various fields and industries. One area that is already seeing significant adoption of blockchain is the financial solutions ecosystem.
The controversy surrounding the revolution brought about by blockchain and cryptocurrency has gone beyond whether the technology is implementable to when it will become mainstream.
It is clear that one of the major factors that is delaying the universal adoption of blockchain and cryptocurrency remains the appropriate regulatory frameworks to govern implementation. Hence, it is now incumbent on the big banks, governments and other regulatory agencies to live up to their responsibilities and encourage the seemingly inevitable solution to various global inconsistencies.