This way, if there is a problem with a transaction, or the currency, etc. there is someone left holding the bag, which is a better fit with the existing legal infrastructures that are already in place.
I'm actually pretty surprised that this is coming from a corporation, and not a national government. SWIFT can be an absolute bear, and providing a programmable currency interface à la Stripe, but with lower fees and the full backing of a government could be a killer app for international trade facilitation.
This provides the fuzzy feeling without any tangible benefit, and all the of the downsides of trustlessness.
One of the issues with concurrency is the assumption that the transaction is between two non trusting parties (obviously it doesn't have to be that way). Most business don't want to / don't do business if they don't trust each other... and if they do trust then there are other ways to do business.
Not sure if this JPM coin addresses that exactly, but it is kind of interesting.
Also, any international benefit is just temporary arbitrage. The increased costs associated with international transactions comes from the high risk, which will inevitably catch up to any system that becomes popular.
Source: We used to accept bitcoin(via bitay).
The failure modes of DLT are going to be interesting. But the currency risk is far lower than with regular bitcoin since it's not an independent currency but is pegged to the dollar.
Well, there are lots of reasons why this is useful. The biggest reason, IMO, is that it allows customers who use it, to transparently see the ledger. This reduces (but does not entirely get rid of!) trust requirements. That's useful, in and of itself.