, 34 tweets, 10 min read Read on Twitter
1/ With all the buzz around JPM Coin, I have some Feelings as a JPM Blockchain "OG" especially as people jump onboard the bash-train. They're completely missing why this is important progress for the entire ecosystem.
2/ First of all, let's agree on something - that's always a good place to start (cc @QWQiao)
3/ we spent many hours-long whiteboarding sessions saying stuff like this, word for word, going as far back as 2016. But saying it doesn't make it so and doesn't get you from Here to There.
4/ Yes, Internet > Intranets, Permissionless > Permissioned, Open > Closed. As someone whose parents lived thru China's Cultural Revolution with deep scars from economic censorship & central controls, I couldn't agree more.
5/ But intranets also played an important role in getting us to where we are today. It taught people and companies how to connect to a network, share knowledge & workflows, exchange information, and ultimately to think of devices as gateways instead of single-point destinations.
6/ While it's fun to go Big Bank bashing, people should also be asking: What could JPM and its institutional & corporate partners learn from JPM coin? A list (please note I don't speak on behalf of my former employer - I'm just here for the karma):
7/ How to safely & confidently manage custody of tokens with minimal value at risk and reflect them on a balance sheet / corporate accounting system / daily P&L - still a big logistical and psychological hurdle for organizations - and use them day-to-day (wallets, anyone?)
8/ How to issue & redeem tokenized assets while ensuring integrity between on-chain instruments and their off-chain underlying assets. We described one of those ways in this patent - it's the only one I have so far, so I'm going to shill it to the max: appft.uspto.gov/netacgi/nph-Pa…
9/ The experience of settling transactions involving tokenized non-cash instruments in real-time and on a delivery-vs-payment basis, such as for tokenized debt or OTC derivatives, instead of being stuck with the delay of legacy payment rails: blogs.wsj.com/cio/2018/05/16…
10/ How to assess counterparty risk and apply market-based discounts for *all asset-backed tokens* which are woefully understated in public stablecoin markets. In other words, sorry but there's no way that 1 USDT = 1 USDC = 1 JPMCoin = 1.000 USD.
11/ How to transact privately in a distributed network. It's still a common misconception among institutions that you need to give up privacy in order to get the benefits of a distributed, public ledger. While it's true that the privacy battle is constant & imperfect...
12/ Quorum's been leading the way for privacy-capable, open-source permissioned chains, with the pioneering work of @AmberBaldet @pmylund and the @zcashco team...
14/ ... Let's get over this one so we can get to the hard stuff like how we ensure privacy-first, user-first, business-friendly approaches to data & transaction privacy (cc @jerrybrito @coincenter) coincenter.org/entry/the-case…
15/ There might be some lessons that ultimately turn out to be wrong (and that's okay). Lessons like:
16/ "Blockchain NOT Bitcoin!" See here: medium.com/arca/demystify…
17/ "We can make money from this!" Trust me, this is likely not the next big moneymaker for JPM. There's many things in the pipeline that are less costly & risky, more profitable, and headache-free than investing resources into JPMCoin & managing a new deposit-taking mechanism.
18/ "We can do this the good ol' centralized way - mission accomplished, revolution averted!" No, because there's a ton of amazing projects coming for JPM's lunch and it's long past time to find ways to work with and learn from them #DeFi github.com/ong/awesome-de…
19/ look, Crypto Twitter has been banging the war drums for YEARS on tackling mainstream education & participation & awareness. JPMCoin pushes forward on all those things - not to mention all the hundreds of hours spent educating bank execs, corporate CEOs and regulators.
20/ Sure, institutions like JPM have huge privilege & power. They should be held to account for many things that Crypto Twitter hates. But there's also individuals inside those organizations that are fighting the good fight for a better way to do things.
21/ For this technology to fulfill its potential, we need everyone on this journey - without the toxicity and tribalism and taunting. Even if their path may not look exactly like yours:
22/ Things have definitely gotten better. I remember daily JPM Mean Crypto-Tweets sessions after work. It was a way to stay grounded and open-minded and to stay up to date, but it was also depressing & discouraging, esp when this felt like a big career risk for many in 2015/16.
23/ Fair, measured assessments (with a healthy serving of skepticism) like this would've been a godsend (cc @nlw):
24/ even anti-XRP cheers from the sideline, made with significant risk of inciting the you-know-what Army, are uplifting in their own way (cc @twobitidiot):
25/ and this (cc @mdudas) ... continuing storm in separate thread, I didn't know there was a limit
26/ never mind, I figured it out.
27/ anyways, all of that's to say: all I wanted to do this morning is congratulate @cmoyall and @TyLobban and Umar "What's Twitter" Farooq (I kid, I kid) on continuing to push the ball forward. The work you're doing matters and I'm excited to see where it goes.
28/ P.S. some things for JPM to explore next (gradually... let the other stuff sink in first, folks):
29/ Governance - what if JPMCoin was backed by multiple institutions? What decisions need to be made together at the outset and on an ongoing basis?
30/ Public chain interoperability - @econoar already pointed this out, but what if JPMCoin became exchangeable for ETH or DAI? How would that work?
31/ Collateralization & monetary policy - what if JPMCoin was backed by corporate debt instead of fiat reserves?
32/ Regulator education - how can JPMCoin help regulators consider the benefits & dangers of a central bank-issued digital currency, esp. what NOT to do?
33/ It's a delicate balance that should have many other people at the table, but this helps move us further from theoretical, academic discussions and into practical, data-driven debates based on real ecosystem impact and observed behaviors.
34/ fin
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Franklin Bi
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!