JP Morgan recently launched its own stable coin after criticizing
JP Morgan recently launched its own stable coin after criticizing the crypto world for years. This has generated a lot of buzz and debate whether the JPM coin is a part of the crypto game or a different digital entity.
On February 14th, the financial institution JP Morgan launched its digital coin which would provide liquidity to its customer for making cross-border transactions. The coin’s value will be pegged against the US dollar, and thus earning the name stable coin. JPM coin functions quite similarly to that of XRP in the Ripple’s xRapid service. However, the similarity between the JPM coin and cryptocurrency ends right there.
JPM coin might look like a cryptocurrency but apart from its digital form, there is no similarity between the two concepts. First, the JPM coin would only enhance the internal transaction system and won’t be listed on the trade market like any other cryptocurrency. The coin cannot be used as an asset, or store of value or a form of exchange.
JPM coin Vs Ripple xRapid Service
Jason Bloomberg a Forbes contributor who penned the article, “JPM Coin From JP Morgan Chase vs. Crypto Fans,” believes that the newly launched stable coin by JP Morgan exposes the Ripple network and its scam. Jason explains
“While Ripple has been positioning XRP as solving cross-border financial transaction issues among banks, there are also indications that Ripple is essentially a scam. Banks around the world are getting wise, and JPMorgan has timed the release of its coin to fill the void that Ripple’s apparent dishonesty is leaving in the marketplace. What we’re seeing is a market change triggered by Ripple and the correspondent banks in a defensive mode,”
The Forbes contributors’ claims are not backed by any substantial evidence, but on the fact that the majority of the XRP is controlled by the parent company. Bloomberg’s argument is trying to establish that there is not much of a difference between the operations of JPM coin and Ripple
Ripple Struggling to Disassociate Itself From the “Centralized” Tag
Ripplenet as a banking solution is appreciated by one and all, and this is the reason that the majority of banks are looking to implement it in their banking system. However, the control over the majority supply of XRP is still a grave concern for many. Investors and institutions around the globe have been cautious of their exposure to XRP even after their association with the Ripple’s payment solution.
Bloomberg’s argument is valid to a certain extent, as he believes calling out JP Morgan is not fair even when they have made it clear that they won’t be competing against any other cryptocurrency in the trade market.
Final Thoughts
The flak that the JPM coin is receiving is mainly because of its stand over the Bitcoin and cryptocurrency in general. However the community needs to understand that the “stable coin” is only making use of the technology to improve its internal financial system and there is not much of a similarity between the other altcoin and the JPM coin beyond the distal aspect and its value is pegged against the US dollar to provide a sense of security to its customers.