Image Credit: CNBC
Jamie Damon, the founder, and CEO of JP Morgan Chase and Co. had been an early ‘cryptocurrency basher.’ He has compared it to the dot com bubble and even the tulip mania. Nevertheless, the giant multinational went on it introduce their own ‘stable coin,’ JPM Coin.
JPM Coin is the US dollars will back a centralized Blockchain token which is all probability. Damon claimed in a recent interview that JPM coin has broad utility according to him. The token will not only be used internally in the firm but also as a medium of exchange for other trades as well.
Nevertheless, the #cryptocummunity doesn’t favor a centralized token especially when a banking institution backs it.
During an interview the Blockchain Summit where dignatories from the cryptocurrency world lend their thoughts. Ripple CEO Brad Garlinghouse went on to mock the newly announced JPM dollar-pegged stable coin.
According to Garlinghouse, JPM Coin is not a competitor to Ripple’s XRP as it does not add utility like XRP to any system. He is apprehensive of other banks releasing their dollar-pegged stablecoins too.
Hence, if different banks release their cryptocurrency, there’s a lack of interoperability between them. He hypothetically explained a situation where JP Morgan, Citi bank, BBVA and so on have all released their stablecoin. Therefore, the issue of interoperability will undoubtedly be the reason for the failure of the JPM coin.
Moreover, Garlinghouse questions the sense of introducing JPM Coin in the first place, saying institutional clients can merely stick to the dollar.