Ripple CEO Questions Use Case of JPM Coin, Believes It is More Prone to Risk than XRP
A recent CoinDesk report revealed Ripple’s CEO, Brad Garlinghouse’s viewpoint on JP Morgan Chase’s official announcement of its stablecoin, JPM Coin.
While Garlinghouse appears to encourage and applaud JP Morgan Chase for their new endeavor, he supposedly feels discomfort with respect to the global financial services’ approach in using the said token.
The JPMCoin was supposedly developed by JPM’s very own developers. The goals behind the stablecoin include conducting instant securities issuance, possibly serving as an alternative to the US dollar, and in the long run, becoming of use for mobile payments.
According to the claims made, Brad Garlinghouse shared the following during the Chamber of Digital Commerce’s Blockchain Summit, which took place in Washington, D.C. In particular, he said:
“That’s the only nice thing I’m going to say about this,” which was in reference to the fact that more traditional financial instituitions are beginning to retort to the use of DLT. The main argument made for his supposed unfriendliness towards the stablecoin is that other banks will not be using it.
As per his words, a bank representing its own stablecoin creates problems that the DLT was introduced to solve. Another problem he sees in this is the rotation of funds within the JPM ledger, which to him is unreasonable. Here’s another extract that has been shared via CoinDesk:
“If you give them a dollar for deposits, they’ll give you a JPM Coin that you can then move within the JPM ledger […] If you’re just moving [money] within the JPM ledger, and it has to be dollar-to-dollar, one-to-one backing, I don’t understand what problem that solves.”
He further noted that if the problem does somehow gets resolved through this approach, then “yay” and left it at that.