Chase-ing Bitcoin: Is JPM Preparing To Unveil Its Own Electronic Currency?

Tyler Durden's picture

If you can't beat 'em, join 'em, copy 'em, and then beat 'em. While everyone's attention has been glued to Bitcoin (and its various smaller and less viable for now alternative digital currencies), JPMorgan has submitted a patent which appears to set the scene for a competing centralized network to Bitcoin. As LetsTalkBitcoin noted first, the "Method and system for processing internet payments using the electronic funds transfer network," states that Chase's technology is a "new paradigm." Moreover that it permits the creation of "virtual cash" (also referred to as "web cash") with a "real-time digital exchange of value."

Via eCreditDaily,

Imagine paying for some product in a transaction directly with the seller that doesn’t include a costly third-party fee or the revelation of a personal account number — the current components that comprise credit card and debit card purchases. Imagine this system with a “real-time digital exchange of value.” And imagine that you can archive all the transactions in a personal digital wallet, with its own “Internet Pay Anyone (IPA)” account and inherent safeguards built-in, something that you could call “Virtual Private Lockbox (VPL),” according to JPMorgan’s patent.


If this “web cash” system — as JPMorgan Chase calls it — seems familiar, it should. It smacks of the peer-to-peer transactions of bitcoins and other cryptocurrencies that increasingly are making the world’s biggest banks uneasy about the future of e-commerce.


The patent, first revealed by, is a fascinating look into JPMorgan’s veiled outlook on the evolving but growing bitcoin universe, and other more widely-accepted payment systems.


JPMorgan’s proposed system offers another eerily familiar component, which seemingly mimics “blockchain,” a publicly available, permanent ledger of bitcoin transactions.




Without naming the virtual currency or any competing payments system by name, the bank takes a swipe at the crytocurrency model.


“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,” according to Chase’s patent application published by The United States Patent and Trademark Office (USPTO). It was filed August 5th, 2013.




JPMorgan Chase sees “a new marketplace” emerging for “low dollar, high volume, real-time payments with payment surety for both consumers and producers.”


As points out, “Bitcoin has also been ballyhooed for it use with micro-payments and payments under ten dollars due to its zero to negligible fee structure.”


JPMorgan Chase: “The present invention further enables small dollar financial transactions, allows for the creation of ‘web cash’ as well as provides facilities for customer service and record-keeping.”

While naming protocols for these vitual currencies is uncertain, we can't help but think "Dimons" would be appropriate as the web cash becomes increasingly more trusted.


LetsTalkBitcoin discusses how JPMorgan's proposed system works:

Under The Hood: Internet Pay Anyone


“…The structural components to the system of the present invention include:


    a Payment Portal Processor; a digital Wallet;
    an Internet Pay Anyone (IPA) Account;
    a Virtual Private Lockbox (VPL);
    an Account Reporter;
    the existing EFT networks;
    and a cash card.


“…The Payment Portal Processor (PPP) is a software application that augments any Internet browser with e-commerce capability. The PPP software sits in front of and provides a secure portal for accessing (finking to) the user’s. Demand Deposit Accounts (DDA) and IPA accounts. The PPP enables the user to push electronic credits from its DDA and IPA accounts to any other accounts through the EFT network…”


“…The {technology} …includes freely publishing the payment address and making it available to users of an internet portal or search engine…”


“…Currently, all Internet transactions use “pull” technology in which a merchant must receive the consumer’s account number (and in some cases PIN number) in order to complete a payment. The payment methods of the present invention conversely use “push” technology in which users (consumers or businesses) push an EFT credit from their IPA or DDA accounts to a merchant’s account, without having to provide their own sensitive account information…” 


A New Paradigm


“…The present invention represents a new paradigm for effectuating electronic payments that leverages existing platforms, conventional payment infrastructures and currently available web-based technology to enable e-commerce in both the virtual and physical marketplace. The concept provides a safe, sound, and secure method that allows users (consumers) to shop on the Internet, pay bills, and pay anyone virtually anywhere, all without the consumer having to share account number information with the payee. Merchants receive immediate payment confirmation through the Electronic Funds Transfer (EFT) network so they can ship their product with confidence that the payment has already been received. The present invention further enables small dollar financial transactions, allows for the creation of “web cash” as well as provides facilities for customer service and record-keeping…”

and the implications:

I view this technology and patent application as an overwhelming good thing.  Bitcoin is driving Innovation.  It has been said that credit cards and the legacy banking system in use today was never meant for use over the internet.  Chase’s updated Internet Pay Anyone technology appears to come head to head with Bitcoin.




While it remains to be seen if this technology is a “Bitcoin Killer,” other players such as eBay/PayPal (which have been riding under Bitcoin’s coattails through marketing gimmicks) ought to pay close attention to this emerging technology.  If Bitcoin does get a “toehold” in the marketplace, we just might see this technology activated.  The Chase is on.

Finally, the patent application itself (source USPTO):

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Bananamerican's picture

Get JPM's new Dimon embossed "ShitCoin"™

Dear Infinity's picture

It's like that bad Star Wars movie with all of the clones, and Jaimie is Jar Jar Bynx. 

Meanwhile silver is above $20 so excuse me while I kiss the sky.

fonestar's picture

JPMCoin!  That's great!

I hope they have a Twatter release party too!

smlbizman's picture

getting old fone, 4 post before yours...come on man get in the game...what kinda coiner are you...

outamyeffinway's picture

So all you Bitcoin haters take note. You have 3 choices at this point

1)      Ignore reality and deal with the consequences

2)      Embrace cryptocurrency

3)      Use the banking industries digital representation of fiat.


CH1's picture

Hey Jamie - bring it on, motherfucker!

Balvan's picture

50 years from now, we will have Cryptman Sachs, JP Cryptman, Federal Cryptoreserve ...

pods's picture

Goldman Sachs is coming out with the Squid Quid.


Mudduckk's picture

Mee Likey the Squid. Mmmmmmm. ROLF


Harlequin001's picture

Why don't we just keep it simple and go back to real gold in real money? Otherwise we're just going to end up with a billion different cryptocurrencies and none of them worth a shite.

Harlequin001's picture

Bye bye fucking Bitcoin. You know how this ends now, you have two cryptocurrencies running side by side, one controlled by the banks, the other 'open sourced'. The banks print money and buy bitcoin, then they sell it, then they buy it back for less, then they ramp and sell it, then the buy it back for less ad infinitum. Bitcoin becomes so volatuile no one can use it and the banks currency stays rock steady.

The only waty bitcoin can survive is when the banks can't print money i.e. when we have gold in money, in which case what is the fucking point in Bitcoin?

Game over boys, read 'em and weep.

Pladizow's picture

Or they buy and never sell - eliminating the competition?

Harlequin001's picture

No they buy and sell for more and then buy back for less until they have them all, and only those that ramped and got out early ever made any money.

There will be crypto currency wars between banks with each trying to destabilise each others currency with no one in any position to stabilise bitcoin or any other nonExistentShiteCoin.

Dead man walking...

Do yourself a favour and buy some gold.

john39's picture

bankers created bitcoin... made it appear independent to give it credibility. open the sheeple to the concept of digital fiat. once this task is complete, bitcoin will be killed off, and the NWO digital fiat will be borne.

fonestar's picture

The bankers definitely did not create Bitcoin.  Sorry John, I liked your posts on here when I first signed up years ago but to believe they would voluntarily end their monopoly on money and credit creation is dumb.

Pegasus Muse's picture


Sean Caulfield @Seanismoney

The key function of "JPMCoin" is that when you buy one, your wallet disappears.

Prisoners_dilemna's picture


Required reading for any xxxCoin holder.


Why is Bitcoin valuable? This is perhaps the most important topic to address, as nothing else matters if Bitcoin has no value. What makes Bitcoin worth anything? Isn't it just "fake"? Isn't it just a made-up pretend virtual currency? Many say, "I can't hold it, I can't see it, and thus it's artificial and not worth my time." Let's challenge this understandable initial reaction. Let's demonstrate why Bitcoin is valuable, and very much worth one's time. Financial privacy has long been symbolized by the notorious "Swiss bank account." Yet, anyone with a Swiss bank account has to trust that bank, and as we've seen in the last couple years, "bank privacy" even in Switzerland is a myth - banks there have been bending over for the US government and divulging customer information. So imagine having a private, numbered Swiss bank account, but without having to bother with the Swiss bank itself. That is Bitcoin. Instead of placing your trust in a regulated bank governed by fallible humans, Bitcoin enables you to place your trust in an unregulated cryptographic environment governed by infallible mathematics. 2+2 will always equal 4, no matter how many guns the government points at the equation.

Bitcoin is thus the only currency and money system in the world which has no counter-party risk to hold and to transfer. This is absolutely revolutionary and you should read the preceding sentence again. Gold advocates will point out that physical gold bullion has no counter-party risk, but that is only true for storage in your own home. Store it in a vault or bank and you have counter-party risk. And sending gold? You have to trust all sorts of people if you wish to transfer your gold somewhere else or spend it across distance.

Bitcoin means complete ownership of money both in storage and transfer. Nobody can prevent you from having it. Nobody can prevent you from spending it. Even if one's home is broken into, or even if the government issues a "confiscation order" (as they did with gold in 1933), one's Bitcoins are perfectly safe. Try fleeing a country with $1,000,000 in bullion without the government knowing about it. Easier said than done. With Bitcoin, it's almost easier done than said - you could put $1,000,000 of Bitcoin on a USB drive, or even write the private key on a piece of paper, or just email the wallet file to yourself to be retrieved outside the country. Starting to see the value? Never in the history of the world has an individual had this ability. It is unprecedented. No really, WHY is Bitcoin valuable??? At this point, skeptics should say, "okay fine, you can store and spend Bitcoins without interference, but what gives them initial value? Why do they have a price?" It's a very good question, and even expert economists have struggled with the answer. But really, the answer is simple. Bitcoins have value because A) they are useful and B) they are scarce. Combine those two attributes in any asset and you will discover it has a price. The moment the first Bitcoin was traded to someone in exchange for something else, an exchange rate (market price) was established. Subsequent exchangers agreed or disagreed with that rate, and made further trades accordingly. Bitcoin thus spontaneously developed a price, as do all things in an open market if they are sufficiently useful and sufficiently scarce. Let's look at value a little further, because it's a contentious issue with Bitcoin. There are many (including Paul Krugman) who believe Bitcoin isn't worth anything and is no more than a speculative bubble fad. I wouldn't expect Krugman to "get it," but wiser/real economists need only observe metals to start understanding why Bitcoins have value. After all, any strong advocate of gold or silver as money should hopefully understand why these metals should be money. The answer is that these metals tend to be chosen in an open marketplace as money, because their specific properties make them useful as a means of exchange. It is the properties of gold and silverunique to these metalswhich make them excellent money. They are scarce, fungible, uniform, transportable, have a high value-to-weight ratio, are easily identifiable, are highly durable, and their supplies are relatively steady and predictable. Contrast other goods like chickens, or seashells, or sand, and you discover that none of them are as good on the above attributes as precious metals. Chickens can't well be cut in half or recombined, seashells are not uniform, and sand is too plentiful to be used as money. Why not other metals... why don't we use iron as money? It's not scarce enough - you'd need carts of it at the store to go shopping. As any Austrian economist can tell you, money is merely that commodity in an open market which best satisfies the properties necessary for useful exchange. Gold and silver take the cake every time a violent government doesn't get in the way... or at least, this is true historically. But, this doesn't mean that gold and silver are "perfect, infallible money." Indeed, there are practical problems. One can't easily divide and combine silver coins to make change. One can't easily send large values of gold across distance without hiring security and waiting for transport. One must pay storage fees, or risk theft at home. And, while difficult, it is possible to make fake gold and silver ingots and pass them off in trade as real. So then it follows that if gold and silver are not perfect money (though admittedly the best we've had), perhaps mankind could discover or invent something that was even better. This is the Bitcoin experiment - the question of whether Bitcoin, with its specific attributes, is an even better form of money than what the marketplace currently enjoys (or in the case of state fiat, is forced to use). If the Austrians are right, and a marketplace tends to chose the medium of exchange which best works as money, and Bitcoin's specific attributes make it excellent money, then perhaps the marketplace will, over time, increasingly use it for such. The answer so far, is yes. Bitcoin is finding more and more niches for early adoption, which further supports its market price, providing confidence to holders that it will retain value, and this further lends Bitcoin to be used for still more purposes. It's an organic and messy process, full of trial and error, potholes, brilliant innovations and terrible failures. But that's what an open marketplace is, no? Every day a more resilient economy is being built, and not at the point of a gun, but voluntarily - not by decree of Bernanke, but by spontaneous, self-interested private order. Many have made the argument that "nothing backs Bitcoin." And this is true. Bitcoin cannot be redeemed for any fixed value, nor is it tied to any existing currency or commodity. But, neither is gold. Gold is not backed by anything - it is valuable because it's useful and scarce. Cars are not backed by anything, they are merely useful as cars and thus have value. Food is not backed, nor are computers. All these goods have value in proportion to their usefulness and scarcity, and one merely needs to see the usefulness of Bitcoin to understand why, without backing from any government nor corporation, without being tied to any fiat currency or existing commodity, it commands a price on the market and rightly so. Bitcoin vs. The State Now we get to the more fun part, which is especially relevant to any libertarian discussion of Bitcoin. This is the manner by which Bitcoin supersedes government control. "Okay," people say, "so Bitcoin is new and the government doesn't regulate it yet, but they will!" Unfortunately for the government, they cannot. No person nor group of people can defy the laws of mathematics upon which Bitcoin is built. But first, let's look at the ways the government could interfere with the Bitcoin system..........   continue reading at link provided above. PS. Downvote if you want to attempt man love with bernanke.
giggler321's picture

Anyone read all of that?  What'd he say, 1 sentance max?

SilverIsKing's picture

JPM will surely be IPOing their new house branded digital currency real soon.  It will be priced at $1,000/share, umm...coin.

This is the one IPO they will let Granny in on.

Prisoners_dilemna's picture

Agreed.  Lets keep shit dumbed down around here so we stay enslaved.   +1

Mad Mohel's picture

Dumb is stupid bastards throwing up a wall of shit without any paragraphs. You fuckin cretins can't even write properly, and you want people to buy into your bullshit e-money?

dark pools of soros's picture

just burn these dumb pig leftovers from when we pumped gold & silver here...

they don't understand that it doesn't matter if they have 1oz or 100oz if their fantasy comes true..  if/when that time comes, you will have to sell as much gold during the ramp up before it all goes pop and no one will care about wealth and only hunger.


in other words, when shit is flying, anyone who had piles of worthless money to buy your gold would be buying the real shit you need to survive that you are trying to get money for by selling your gold.


If you really think stores will be taking gold, you have to imagine that 99% of people won't have gold but will know how to loot..  so those stores would be empty anyway..


game theory boys.... game theory.   Just keep a few coins to get out of dodge if you have to. 



Prisoners_dilemna's picture

You linked to my account page. Any idea why my comments prior to October 2013 aren't listed on my account page?   Sometime I want to go back and review a discussion or find a link that I commented on....    but again, my account page only gives the most recent 50 comments or so.


Are older comments archived like the articles?


DoChenRollingBearing's picture

Actually all I did was just "copy & paste" your name from the blue bar where your moniker is to my reply to you.  I do not know how to answer your questions.  Not a tekkie.

I liked your reply a lot though!

Prisoners_dilemna's picture

Well thanks. In my personal life I'm seeing that even the people who are interested in BTC, often don't want to bother informing themselves. So in order to get people to follow the link which I've posted 6 or 7 times now, I figured I'd give a loooooooooong quote. 


Sorry for the length and poor editting. I'm glad you enjoyed it.   I enjoy it too. Its gives me a liberty boner everytime I read it.


I will post it again in the future,  just to make sure  all the new zero hedge readers who are showing up en masse daily get exposed to it as well.  So ahead of time to all my ZH co-conspirators......    I hope it gives you a liberty boner as well.  No apologies though for repeating myself from now until the Fed crumbles and Gold and BTC rule the world side by side.

tradewithdave's picture

That's the GoldmanCoin and it's not a wallet, it's a laptop and it doesn't disappear... It gets found in a NYC garbage room with a fully functional email account that the finder can log into.

My guess is Lucas van Praag and Bart Chilton are toasting umbrella drinks poolside about now.

centerline's picture

I do believe you are right john.  One way or another.  Invented outright or hijacked along the way.  Digital fiat is the next logical step here.

remain calm's picture

This makes perfect sense. After you sold all of your gold that was not yours, time to time to make a new currency to sell to people to buy back the gold you once held.

BLOTTO's picture
'Satoshi Nakamoto'


= (anagram)


'A hook to Satanism'



Prisoners_dilemna's picture





'To Blot'

'Lob Tot'

'Bolt To'


Seriously though,  nice investigative work.  Kudos!

Although satoshi nakamoto also comes out as 'Hook as to stamina'


Hooks To Tasmania


Shook a anatomist


oak ash into atoms


oak is ottoman


ask smooth antonia


taoism ash not oalk


manias took host


ok that asians moon


oasis man took hat


homo attains oaks


samoan has kit too


ask homona taoist


monk shat to asia

Wen_Dat's picture

There must be an app for that 

BLOTTO's picture

Yes PD - its all relative i guess...


Clint Eastwood = Old Action West

Schoolmaster = The classroom

A telescope = To see place

The Morse Code = Here Come Dots

Christmas tree = Search, Set, Trim

Statue of Liberty = Built to Stay Free

Slot machines = cash lost in'em


The Meaning of Life = The fine game of nil

Prisoners_dilemna's picture


You are much better at the anagram game than I am.  :)


again kudos

john39's picture

nice work. shocked I tell you. shocked. satanic bankers? who could ever dream such a thing! gasp.

my_nym's picture

once this task is complete, bitcoin will be killed off, and the NWO digital fiat will be borne.

History shows that sheeple can already be led like lambs to the slaughter based on "NWO" rituals like 911 or sheared at will by Talmudic bankers above the Right/Left paradigm that cloak themselves in the smoke of WWII and the sacrifice/holocaust of the sacred six million that laying the foundation of the Pentagon on 9/11/1941 stopped, etc. (Who says that people have progressed beyond rituals, human sacrifice and the "scripts" of Scriptures?)  

But there is a growing amount of evidence that the decentralized nature of the internet is a threat to them and any others seeking to centralize power too.  At least for now.  Besides, there's not much sense in failing to take advantage of the internet for now in order to try to invest in apocalyptic events and increasingly unlikely "There might be no electricity." scenarios instead.  If you find yourself investing heavily in scenarios in which there is no electricity or no internet then it's probably time to take a deeper look at things.  Critics of Bitcoin probably need to make their minds up about that... either there is no electricity/internet or there is, so that everyone can be tracked and incorporated in the New World Order Inc. even more than they already have been.  Most currency is already digital.  I'm not sure how the form of encryption or the structure of the network it exists on magically makes it NWO or not NWO.  Regardless, most people are already like sheeple anyway... so you really wouldn't need some bit conspiracy to create Bitcoin in order to get them used to the concept of digital currencies similar to the digital forms of currency that have already been incorporated in their lives.            

fonestar's picture

Lay off the conspiracy stuff.  There is no reason whatsoever why Bitcoin users would suddenly say in ten years, "gee I really liked this decentralized currency with no fees that can't be controlled.  But you know what?  I think I need to change to using a centralized, banker controlled currency."

That's stupid and there is not one situation where that would come to pass.  Most of you guys seem to have trouble with this stuff because you have no clue or exposure to hacker culture or p2p networking.  If you did you would easily see how dumb these ideas sound.

funthea's picture

Actually, that is what has been happening now, everyone buying and holding. Thus the ramp ups in price. Speculative bubble. IF everyone would just start spending it instead of holding it, it wouldn't be so volitile.

Mudduckk's picture

Yay. Me like. My very own private debt jubilee. Ramp it. I got a price in mind where I swap BTC for Muppet Coin. The sooner the better.


itchy166's picture

They are afraid of it, or why bother? 

CH1's picture

Bye bye fucking Bitcoin.

LOL, another day, another reason for you to dream of Bitcoin's destruction.

Aren't you getting tired of this?

Harlequin001's picture

Dream on, you never know you might make something from it, provided there's still someone to sell to when you need to.

dark pools of soros's picture

same with gold...  the scenarios in your head are ficticious