JP Morgan accepts major Bitcoin customers hours after "halving"

• American banking giant JP Morgan Chase has accepted two clients involved in the emerging bitcoin sector.
• U.S. cryptocurrency exchanges USA Coinbase and Gemini have received account approvals after a long wait, according to the Wall Street Journal.
• The news came just under 24 hours after Bitcoin underwent a mass-marketed "half" update.

JP Morgan Chase will offer its banking services to two American bitcoin exchanges. UU., Coinbase and Gemini.

The banking power of Wall Street approved the trade request in April 2020. It will begin processing a multitude of services in the coming days, which will include wire transfers, automatic deposits and withdrawals, as well as bank transfers, people familiar with the import he said to the Wall Street Journal

.

Change of heart

Founded in 2012, Coinbase is currently one of the leading cryptocurrency exchanges in the United States. UU., Serving more than 30 million users. Meanwhile, Gemini is a distant competitor belonging to Facebook's famous Winklevoss twins, but has helped to attract institutional and retail investors into the cryptocurrency space.

This partly explains why JP Morgan accepted customers from a notoriously crazy Bitcoin industry. Coinba se and Gemini have become a benchmark for a possible marriage between cryptocurrencies and conventional finance. Unlike most of its peers, which operate unevenly, the two American exchanges strictly comply with American regulators.

Coinbase and Gemini have obtained a money services license from the Financial Crimes Enforcement Network or FinCEN. They also have specialized work permits in New York, the well-known BitLicense.

But the most notable conclusion remains the change of mind from JP Morgan towards Bitcoin. In 2017, just before the cryptocurrency reached its historic record of nearly $ 20,000, JP Morgan CEO Jamie Dimon called Bitcoin "fraud".

"It’s worse than tulip bulbs," said Dimon. he told CNBC

. "It's not going to end well. Someone will die." He also said: "It's just not real, it will eventually stop."

Bitcoin, halving and pandemic

The bank's approval for Coinbase and Gemini also appears in popular media less than 24 hours after Bitcoin underwent a mass market technical update called halving. In the afternoon of May 11, a preprogrammed algorithm reduced the daily supply rate of Bitcoin from 1800 BTC to 900 BTC.

It was the third half of Bitcoin in 11 years of existence. Analysts believe that this makes the cryptocurrency rarer, and therefore more expensive in the face of growing demand. The Bitcoin supply limit is 21 million tokens.

The story of "deflation" appeared as a protagonist against the inflationary stimulus measures of the world's central banks. Many analysts see that the fiduciary value soon depreciates due to the open printing. As the coronavirus pandemic grows, more and more central banks are turning to fiduciary printing to save their savings.

At the end of March, the US Federal Reserve decided to inject huge $ 3 trillion in cash into the market.

These measures prompted Wall Street investors to seek hedging opportunities elsewhere. Some of them have found Bitcoin because of its conceptual resemblance to gold, the oldest safe haven asset. Recently, billionaire hedge fund manager Paul Tudor Jones decided to allocate 1-2% of his $ 22 billion portfolio to bitcoin.

JP Morgan's decision to add Bitcoin companies means the growing presence of cryptocurrency on Wall Street.

Photo of Sophie Backes in Unsplash