For years now since cryptocurrencies stormed the financial market, banking institutions haven’t been known to delve into this new budding space.
Big banks like JP Morgan Chase have for long been opposed to cryptos – as the statements from the bank’s CEO, Jamie Damon will show.
However, the growing support and adoption of cryptocurrencies is now causing these institutions to change heart. Interestingly, JP Morgan now becomes one of the first banks to introduce their own in-house stable coin. But who really wants it? Ripple’s CEO doesn’t think anyone should really get involved.
Can’t Compete With XRP
Speaking at a recent Blockchain Summit, Ripple’s Brad Garlinghouse had some facts to dish out about JP Morgan’s upcoming JPM Coin.
First off, Brad noted that JPM Coin can’t compete with XRP since it doesn’t really provide any notable utility. Also, the majority of the crypto community hates centralized systems, and the fact the JPM Coin is created to be solely controlled by JP Morgan makes it unattractive.
Problems With Interoperability
Going forth, Brad imagined a scenario where all the major banks create their own stable coins. In effect, this would make transaction handling between the banks all the more difficult than it already is. As such, that would undermine the interoperability of processes among the banks, and no one wants that.
It Doesn’t Solve Anything
In Brad’s opinion, the JPM Coin solves no real existing problem in the current of transaction handling by banks. For one, the bank only exchanges the crypto coin against the deposited fiat currency (in this case USD currency).
The cryptos are then used to transact within the JPM Ledger without adding any kind of utility to the process. As such, it can be argued that the JPM Coin doesn’t really solve any existing problem in the banking system. In that case, Brad thinks it’s better to just use the Dollar.