caused a stir in the community, not only because a financial institution with an international reputation was in charge of issuing the , but also because it represents an evident change of attitude considering that in previous years its CEO declared that was something that went against the rules, calling it “stupid,” “dangerous” and even a ““
Jamie Dimon, CEO of JP Morgan
The fact that Jamie Dimon went from to publicly announcing that his team would issue a native was seen as a victory, however many analysts also considered that this new adventure could represent a risk for and its XRP , as this firm targets the same market as JP Morgan.
The spread quickly, and reactions soon followed. Perhaps one of the most famous was an article published by Ms. Frances Coppola in Forbes that explained how JP Morgan Coin was a “” for .
“JPMCoin is a slap in the face for . Brad Garlinghouse, ’s CEO, is on record as saying he expects “major banks” to adopt xRapid, along with the XRP , in 2019. Now, J.P. Morgan – unquestionably a major bank – has told “no way are we using xRapid or XRP.
Also, some analysts considered that with this , the dominance of XRP could be affected, as even current partners might prefer to use JP Morgan’s technology.
Binance: Calm Down XRP Hodlers, Calm Down…
Brad Garlinghouse: CEO of
However, a report issued yesterday by may calm the nerves of some traders and members of the XRP Army because, after careful analysis, the team concluded that in principle, the differences between JP Morgan’s and XRP are so vast that both could not compete directly.
First, highlights the fact that JP Morgan is a stablecoin, whereas XRP is a volatile . This in itself is an essential difference since one can be used as a means of speculation while the other cannot. JP Morgan’s currency would, in any case, compete with other such as USDT, TUSD, USDC, GUSD, etc, and even that doesn’t seem to be the case either.
Another fundamental difference is that JP Morgan does not seem to be interested in opening its to ). Also, the ’s will be private and controlled by JP Morgan:
“For this pilot project, J.P. Morgan is specifically targeting institutional clients such as banks, brokers, dealers and other large corporations primarily for settlement and value transfer use cases within a closed ecosystem. J.P. Morgan has made it clear that the intent of this pilot is to test stablecoins and technologies to improve internal processes, ultimately resulting in efficiency gains and cost reductions for its global client base.”
Moreover, they point out that JP Morgan coin can only be used within JP Morgan’s infrastructure while ’s technological solutions are designed to serve as a bridge between different banks and financial institutions.
JP Morgan is Not a Threat… Yet
However, cannot fall asleep confident of being king in its own market. These immediate differences in scope could change if JP Morgan decides to expand:
“Nevertheless, over the long term it is possible for JPM Coin (along with similar projects created by other banks) to have a disruptive impact on the entire stablecoin industry as they continue to expand its access and use cases …
While JPM Coin will be built on a private and initially restricted to use within the J.P. Morgan network, the initiative could cause other financial institutions to follow suit by creating their own stablecoin running on a proprietary . However, if banks were to work together to align their interests in the development of interbank settlement solutions, may suffer from increasing competition as these banks come up with their own syndicated solutions.
Published at Sun, 03 Mar 2019 03:37:18 +0000
