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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Cryptocurrency Landscape Overview
Breaking Down 3 Types of Cryptocurrencies:
- Decentralized cryptos have been associated more closely with commoditized value and speculative trading than normal payment transactions.
- As an example, Bitcoin is used in about 300,000 transactions per day and Ethereum in 1.2 million.
- In comparison to daily active card transactions of 108 million in the US alone, cryptocurrency usage is miniscule.
- In February 2019, JPMorgan Chase announced the development of its own coin using flat currency accounts.
- JPM Coin is built onto the ConsenSys Quorum, the open-sourced protocol layer for blockchain apps.
- Facebook’s Libra coin, now called Diem, was relaunched to address quality concerns and offer high assurance of local currency convertibility.
- Other adjustments to Libra/Diem’s original launch include a robust compliance framework, assistance to support operating standards, and added strong protections to the currency reserve.
After the initial hype, and the inevitable slump, cryptocurrencies are once again gaining mainstream attention.
The ecosystem of cryptocurrencies and their various methods of implementation, with new products and services as well as intensified interest on the part of central banks, again moves the blockchain currency to the center of attention.