Argentine Banks Test JPM Coin for Internal Settlements

A group of Argentine banks has begun testing JPMorgan's JPM Coin, a blockchain-based deposit token, to streamline internal settlement processes, marking an early step toward modernizing the country's financial infrastructure amid ongoing regulatory restrictions on cryptocurrency services.

The pilot, focused on backend operations rather than customer-facing applications, involves integrating existing services to assess improvements in settlement times and interbank reconciliations. Banco CMF is a confirmed participant, operating through its corporate unit QORP as part of JPMorgan's minimum viable product. Transactions in the initial phase do not involve real funds; they are settled through traditional banking systems, with blockchain technology used solely for recording and reconciling operations. This approach allows banks to evaluate potential efficiency gains without violating current rules.

Maximiliano Cohn, chief information officer of Banco CMF, described the effort as an integration of available services to verify changes in settlement processes. "In the beginning, banks integrate already existing services. The primary goal is to track changes in the settlement process and...