JPM Coin Might Pose As A Serious Threat To Ripple: Are XRP Banking Services Partners in Jeopardy?
The launch of JPMCoin has caused a massive news cycle not only in the crypto industry but in the traditional financial space as well.
The recent developments that led to XRP/USD reacting negatively to news of JPM Coin (JPM) have once again sparked the debate regarding the future of Ripple (XRP) now that JP Morgan is getting in the same game. There is no denying that Ripple (XRP) is no match for something the size of JP Morgan that has been playing this game for decades. However, as things stand at the moment Ripple (XRP) has an early mover’s advantage and a lot of partners on its side.
Aaron Brown from Bloomberg recently wrote a piece describing the use cases of JPMCoin:
The author added:
“It (JPM) is designed to interact with any “standard” blockchain. It needs to be a blockchain to play with other blockchains and I think the distributed ledger means that JPM Coin will circulate outside the JPMorgan private blockchain. Those other ledgers might be private or public, centralized or distributed (probably mostly private and centralized), but the overall system is distributed. ”
Numerous analysts and investors have questioned in the past how and why banks really need to use XRP in order to benefit from Ripple’s technology. Although as of now, XRP doesn’t seem to be threatened by JPM Coin. There is numerous reason, most prominent of which is that JP Morgan doesn’t have a good reputation with cryptos. Additionally, we do not know if other banks are going to use their own cryptocurrencies as well although it is hard to see why not as companies like Facebook are also interested in launching their own tokens.
Regarding the same, Brad Garlinghouse, the CEO of Ripple said: “This guy from Morgan Stanley was interviewing me, I said ‘So, is Morgan Stanley going to use the JPM Coin?’ And he said ‘probably not.’ So, well is Citi going to use the JPM Coin? Is BBVA? Is PNC? And the answer is no. So, does that mean we’re going to have all these different coins? Are we back to where we are with lack of interoperability? I don’t get it.”