Ripple CEO: JPMorgan “misses the point” of cryptocurrencies by issuing JPM Coin
Brad Garlinghouse, CEO of blockchain startup Ripple, claims that JPMorgan banking corporation, which announced its own digital asset JPM Coin this Thursday, “does not capture the essence” of cryptocurrencies.
“As expected, banks are changing their attitude towards cryptocurrencies. But in this project JPM does not grasp the essence – the launch of a closed network today is comparable to the launch of AOL after the IPO of Netscape. Two years have passed, and bank coins have not become the answer, “Garlinghouse wrote on his Twitter, referring to his own article two years ago, in which he was skeptical about the prospects for banking cryptocurrencies. According to the CEO of Ripple, the organizers of such projects are guided by the wrong premises and create “an even more fragmented currency landscape than we have today.”.
“If banks of different groups of digital assets want to transact with each other, they will have to organize markets between their unique digital assets or exchange their digital assets for fiat currencies. What nonsense! ” – he writes.
According to the original announcement, initially JPM Coin will be focused on the implementation of international settlements between corporate clients, which will reduce the time of transactions and avoid the need to resort to the help of structures such as SWIFT.
Bloomberg, citing several experts, writes that these characteristics of JPM Coin make it a direct threat to Ripple, which also focuses on cross-border payments on blockchain in the banking and corporate sectors..
“The JPM project uses a private, restricted blockchain called Quorum, which is much more like Google Sheets than bitcoin. It is clear that this project is competing with Ripple Labs and their centralized XRP cryptocurrency, “said one of the experts..
Another commenter noted that JPM Coin, unlike XRP, is a stablecoin, which makes it a more attractive instrument in the eyes of financial institutions..