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JPM Coin Fails to Impress Ripple’s Brad Garlinghouse… Again

JPM coin

JPM coin

Ripple CEO Brad Garlinghouse has spoken out about JPM coin once again. This time, he gave the major US bank some praise for its new venture. Garlinghouse participated in a fireside chat yesterday at the 4th annual DC Blockchain Summit in Washington D.C. where he further discussed his views of the new bank coin.

Brad Garlinghouse and JPM Coin

In the chat yesterday, Ripple’s CEO said that JPMorgan Chase’s entrance into the cryptocurrency community is a good thing. However, that was the only positive thing he said about the new JPM coin. Garlinghouse is sticking firm to his original stance on these new bank stablecoins, claiming they will ultimately cause more chaos.

JPMorgan Chase announced the news of its new stablecoin back on February 14th and Garlinghouse was one of the first major executives in the cryptocurrency space to chime in.

In the tweet above, Garlinghouse linked a post he wrote back in August of 2016 regarding his view of the potential future of bank coins. It seems his prediction is coming true. The CEO’s argument is that if banks start making their own stablecoins, like JPM coin, it will make the financial system far more dysfunctional than the current one.

Garlinghouse believes that the current financial system lacks interoperability and each bank adding its own stablecoin will not solve this problem. In the fireside chat yesterday at the DC blockchain summit, Garlinghouse described a system shifting to exactly what he predicted in his article.

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He explained:

“This guy from Morgan Stanley was interviewing me last week, and I asked him, so is Morgan Stanley going to use the JPM Coin? Probably not. Will Citi use it? […] Will PNC? And the answer is no. So we’re going to have all these different coins, and we’re back to where we are: there’s a lack of interoperability.”

It’s clear that Garlinghouse firmly believes in his company and what they offer financial institutions. To an extent, he has a very valid point, but it seems these major US banks want nothing to do with XRP.

Why do you think banks aren’t adopting Ripple and XRP? Is it that XRP isn’t a ‘stablecoin’ like JPM coin is? Do you think they want their own control and power over the system? Leave your comments below!

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JPM Coin | JP Morgan’s Crypto is Ready for Trials with Corporate Clients

JPM Coin

JPM Coin

JP Morgan is putting final touches on its much-awaited cryptocurrency JPM Coin. Bloomberg Japan reports that the financial institution is to start trials on the coin with corporate clients, as it also eyes regulatory approval for its use in the mainstream financial sector.

JP Morgan Crypto

JPM Coin runs on Quorum, which is a private version of the Ethereum network, developed by the bank. The coin is to function as a stablecoin where fiat cash is to be deposited in exchange for the token before one is allowed to carry out transfers via a distributed ledger. Recipients of the tokens will be able to convert any amount of the tokens into cash.

While the stablecoin is pegged on the US Dollar, JP Morgan Chase intends to extend it to other fiat currencies. Extending it to other fiat currencies will seek to address the strong interest from clients in Europe and Japan. Pegging the JPM Coin to fiat currency seeks to avert big fluctuations in value given the high levels of volatility in the sector.

JPM Coin Purpose

JP Morgan Chase venturing into the cryptocurrency space does not come as a surprise. The bank is seeking to take advantage of the growing demand for digital assets at a time when mainstream adoption is gathering pace. With the launch of the JPM Coin, the bank aims to provide retail and institutional investors a way of speeding up bond transactions as well as intercompany remittances.

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“We believe that a lot of securities over time, in five to 20 years, will increasingly become digital or get tokenized,” said Umar Farooq, the investment bank’s head of digital treasury services and blockchain.

In addition to investing in JPM Coin, the bank has also taken a keen interest in the underlying blockchain technology. Quorum is the bank’s decentralized network that will support crypto transactions. JP Morgan has also inked a strategic partnership with software giant Microsoft Corporation to handle any technical difficulties that might arise on the blockchain network.

Featured image: DepositPhotos © maloha13

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Could Consumers Use the JPM Coin One Day? Maybe

JPM Coin

JPM Coin

JPMorgan Chase held their annual investor day yesterday. The company’s CEO, Jamie Dimon, was involved in a question-and-answer session and answered a few questions about the bank’s latest venture, the JPM Coin. The world’s first bank coin was originally meant for cross-border remittances, but it seems the bank may have other ideas for it down the road.

JPM Coin for Consumer Use?

During his Q&A session, Dimon explained that he believes the coin could be used in various sectors of the financial industry. “JP Morgan Coin could be internal, could be commercial, it could one day be consumer,” said the CEO.

Two weeks ago, the US major bank announced the news of its JPM coin. It was a shock to much of Wall Street and the cryptocurrency community. Dimon has been a long-time critic of Bitcoin and has even gone as far as calling the digital currency a fraud.

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When the news was released, critics began immediately chiming in—including Ripple’s CEO Brad Garlinghouse. Garlinghouse feels that if every major bank were to adopt its own bank coin, it would make the world’s financial system far more flawed than the current one using SWIFT. The new JPM coin would be in direct competition with Ripple and its underlying cryptocurrency XRP. Ripple, via XRP, does exactly what JPMorgan is trying to accomplish.

Now, JPMorgan wants to expand the coin’s use far beyond what was originally released. From the original announcement, JPM coin was designed to settle transactions between clients of its wholesale international payments business. The blockchain, they believe, will speed up this process.

Currently, the digital currency is being tested in a trial run with a few corporate clients, as well as internally in the bank. At this time, consumer use of JPM coin seems in the idea stages, but if major banks start making their own stable coins, the idea could be pushed further.

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