JP Morgan’s entry in crypto space with the launch its own stablecoin, JPM Coin was quite surprising and led to the increasing debate. Since the announcement rolled, rumors called it out as a direct threat to Ripple’s native token, XRP. However, in the opinion of Brad Garlinghouse, CEO of Ripple – so-called, JPM Coin is missing the point.
However, during a discussion with Nasdaq’s reporter Jill Malandrino at the Chamber of Digital Commerce’s D.C. Blockchain summit in Washington, Brad Garlinghouse answered to a quick question on JP Morgan’s JPM Coin. Although he immediately admired JP Morgan’s initiative to lean in – but immediately mocked by stating ‘that’s the only nice thing. In his words;
It’s great to have major financial players like JP Morgan to lean. That’s the only nice thing I’m going to say about this, Brad Laughed.
— ༜༝🅂🅃🅄🄰🅁🅃🅇🅁🄿💧⚡ (@stuart_xrp) March 6, 2019
Soon after this, he reminds himself of one occasion where he got to ask about the JMP Coin and its use cases – he continued stating;
“OK, so I got asked this last week. I was speaking at a Morgan Stanley conference, and someone asked me…there was this headline about JPM Coin. This guy was from Morgan Stanley who was interviewing me. So, I asked him ‘Is Morgan Stanley going to use the JPM Coin?’. He said ‘probably not’. Or is Citi going to use the JPM Coin? Is BBVA? Is PNC? And the answer is no. And so does that we’re going to have all these different coins, and does that mean we’re back to where we are with lack of interoperability? I don’t get it.”
As said earlier, Brad Garlinghouse doesn’t necessarily think JP Morgan as the threat to Ripple or its JPM Coin a rival to XRP either- However, he thinks the utility of JP Morgan’s coin is only for books. In contrast, Ripple, a San Francisco based Blockchain firm is reaching an enjoying a wider-scope with blockchain – having worldwide partners that are already utilizing its underlying products.
He further elaborates his stance on JMP Coin;
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.