There’s a viral rumor in the cryptocurrency space that Ethereum’s ConsenSys and JPMorgan are planning to collaborate.
The banking giant was rumored to be planning an investment worth $20 million in Ethereum’s ConsenSys.
As contained in a publication, JPMorgan is also in a conversation with ConsenSys, and the firm which has been backing Ethereum for long could net the whopping investment.
It is not clear yet what the term of the partnership could be, sources quoted by the publication claims that both JPMorgan’s blockchain unit and ConsenSys could be merged for viability reasons.
The JPMorgan has a blockchain unit branded Quorum, the section of the giant bank is behind the development of the much-celebrated JPMorgan Coin coded “JPM Coin.”
Already, ConsenSys and JPMorgan have been in a conversation around the partnership since January 2020. Hence, it is possible ConsenSys focus on JPM Coin, a stablecoin designed for fund transfer, among other blockchain-related ideas at JPMorgan.
The Quorum blockchain is made of chains of international banks numbering 320 which makes use of the blockchain in settling financial dealings.
Now, ConsenSys, founded by Ethereum co-founder, Joe Lubin in 2017, is said to be battling financial problems to the extent that it laid off 14% of its employees.
If the rumored partnership becomes a reality, there is a high chance the Ethereum ecosystem will grow speedily and heighten the launch of ETH 2.0.
Fed to Design Cryptocurrency
In a separate development, the Federal Bank of Boston is seen collaborating with the Massachusetts Institute of Technology (MIT) to launch a hypothetical cryptocurrency.
The Fed says it is researching central bank digital currency (CBDC) purposely to understand whether it could be efficient and safe for transactions.
Both MIT and Federal Reserve Bank of Boston are going to be testing and researching a “hypothetical cryptocurrency in a span of two to three years”.
Lael Brainard, the Federal Reserve Board Governor, posited that the Fed is researching on whether CBDC would be good for general use.
The action by the Fed is coming after China launched its digital version of Yuan that has now gone into the testing phase.
Although cryptocurrency has not been generally approved by regulatory authorities across the world, big economics are looking at ways of imbibing the prototype of cryptocurrency in central bank dealings as transactions become increasingly digitized.
Meanwhile, experts are suggesting that the US government look into cryptocurrency to stay atop of China which is already leading in blockchain adoption.