Brad Garlinghouse Takes a Swipe JPM Coin Yet Again
The California based crypto-startup Ripple, which focuses on
the banking sector, seems to dislike the rising competition. Brad Garlinghouse,
the CEO of the cryptocurrency Ripple has vocally disapproved of JPM
Coin at the Chamber of Digital Commerce's D.C. Blockchain Summit in Washington
"If you give [JPMorgan] 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 really 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 honestly don't understand what problem that solves,"
Garlinghouse had additional harsh words for JPM Coin at a different conference last week.
"This guy from Morgan Stanley was interviewing me, I said 'So, is Morgan Stanley going to use the JPM Coin?' And he said 'probably not.' So, well is Citi going to use the JPM Coin? Is BBVA? Is PNC? And the answer is no."
A Bit About JPM Coin
Banking behemoth JP Morgan has officially announced their own cryptocurrency in February 2018. This news came as a shock to some, as CEO Jamie Dimon was notorious critic of Bitcoin. JPM Coin is due to be a mix of a stablecoin (meaning that its value is linked to the dollar) and will be used for bank transfers. This puts JPM Coin in direct competition with both stable coins like Tether & also bank transfer coins like Ripple.
JPM Coin vs. Ripple
The issue shared between Ripple an JPM Coin is decentralization. While one could argue that Ripple mostly fits in to the world of cryptocurrencies despite accusations of lack of decentralization, JPM Coin would be fully centralized & controlled.
It is interesting to see large financial institutes & banks dip their toes in the world of cryptocurrencies. However, it seems to be the anti-thesis to bitcoin & the ideal of financial freedom, that many cryptocurrencies promise.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado