Ripple [XRP] and JPM Coin Serve the Same Purpose: World Economic Forum Report
Ripple (XRP) and JPM Coin, a floating and a stable coin, respectively serve nearly the same purpose according to the latest report by the World Economic Forum.
XRP and JPM Coin were listed as examples of crypto-assets designed for inter-or intra-bank payments and settlements.
"Ripple's XRP is designed for inter‑ or intrabank payments and settlements"
World Economic Forum Report on "Central Bank Digital Currencies (CBDC)"#xrp #fintech #crypto #blockchain @Ripple #payments pic.twitter.com/5GKPZDJRYG
— XRP_Cro 🔥 AI / Gaming / DePIN (@stedas) February 14, 2020
Ripple (XRP) Versus JPM Coin
The report detailed the status of Central Bank Digital Currencies (CBDC). These are coins issued by the central banks of a country and are being experimented by several economies, including Tunisia. China’s PBoC is also said to be in the advanced stage and could roll out the Digital Yuan this year.
XRP and JPM coins fulfill different roles. XRP is not a stable coin, and its value floats depending on market forces. It is also an option, and Ripple Inc., the company that owns a majority of the coin is actively marketing the coin to different banks.
The recent was the National Bank of Egypt who will use the RippleNet, an option that doesn’t incorporate ODL and XRP.
MoneyGram, Cuallix, and Mercury FX work tightly with partner exchanges to facilitate value transfer across the globe.
XRP is Global and more “Inter-bank”
XRP is more global and inter-bank, connecting hundreds of banks.
According to Marjan Delatinne, the Head of Global Banking at Ripple, regional banks and payment service providers are hungry for change, and XRP via ODL and RippleNet steps in filling that gap.
In an interview, Marjan said:
“… but what is apparent with the regional banks and also the payment service providers is that they are hungry for change and for having a competitive edge. That’s really the driver: being able to source on-demand liquidity and providing a real-time experience in terms of cross-border payments.”
JPM Coin? Better use the US Dollar.
Meanwhile, JPM Coin as previously been described as “a walled garden”, not interoperable and doesn’t know what it solves by Brad Garlinghouse. It is also private.
« JPM coin will run on a blockchain network called Quorum, which requires permissions and users must be approved by JP Morgan. » all the other banks will use it for sure! They will certainly ask their clients to open an account @ JPM too. seriously?
— lliinnkk79Ⓥ (@lliinnkk79) February 14, 2020
In an interview, the CEO said:
“If you give them a dollar for deposits, they’ll give you a JPM Coin that you can then move within the JPM ledger. Wait a minute, just use the dollar! I don’t understand. If you’re just moving within the JPM ledger, and it has to be dollar-to-dollar, one-to-one backing, I don’t understand what problem that solves.”
It was also his view that JPM will not pick up because it gives other banks to issue their coins.
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