is under serious threat as IBM joins forces with major banks to issue . In a , IBM revealed it was in talks with two “major US banks” to issue a for internal and remittance payments.
The IBM initiative, which is powered by ’s , is a huge threat to . has always positioned itself and its associated XRP as the future standard for banking remittance payments.
If banks create their own solutions for instant payments, is obsolete?
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It’s official: IBM is open for business in payments with World Wire in 72 countries and 47 currencies. Support for stable coins and cryptos. Come see my keynote with in Singapore this morning
— Jesse Lund (@jesselund)
IBM’s head of Jesse Lund said the interest was sparked by , JPM Coin. The two “major banks” in question have not been revealed.
“Major US Banks” Follow JP Morgan’s Cryptocurrency Lead
JP Morgan sent shockwaves through the crypto community when it launched its own , JPM Coin in February. JPM Coin is a stablecoin, pegged to the value of a dollar. It will be used to instantly settle transactions in the bank’s payment network, reduce transfer times, and ultimately reduce friction in international transfers.
Someone Please Let Jamie Dimon Know That His New is a Fraud
— CCN.com (@CCNMarkets)
After the announcement, other major banks in the US jumped on the bandwagon. Jesse Lund explained:
“We have received interest on the heels of JPM Coin… [The two major banks] “reached out to us after that announcement.”
Whether good or bad, JP Morgan has kicked off a new movement in : bank-issued digital currencies.
Six Other Global Banks Will Issue Cryptos Through IBM
Also on Monday, IBM revealed that to use its network. The six banks will issue stablecoins tied to their local fiat currency.
Among the names are ’s Banco Bradesco, South Korea’s Bank Busan, and RCBC in the Philippines. A further unnamed bank will issue a stable coin pegged to the euro.
“RCBC is pleased to be an early innovator with plans to issue our own Peso stable coin on [IBM’s] World Wire, pending final approval from our regulators.”
Where is Ripple?
Why did none of these banks go to ? ’s sole purpose is to facilitate frictionless remittance payments and settle bank transfers instantly using the XRP .
has run tests with hundreds of banks and its technology is ready-to-go. So why are “major US banks” ignoring and creating their own instead?
already knows the answer. Convincing banks to trust a out of their control is a mammoth challenge. calls it the “800-pound gorilla.” Banks aren’t ready to relinquish control. It explains why only a tiny handful of payment providers are using XRP to settle payments.
has hit back at bank-issued like JPM Coin. As , CEO Brad Garlinghouse said “I don’t understand what problem that solves… Just use the dollar.”
As predicted, banks are changing their tune on crypto. But this JPM project misses the point – introducing a closed network today is like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer
— Brad Garlinghouse (@bgarlinghouse)
Stellar Poised to Oust Ripple?
While IBM grabs the headlines, don’t overlook ’s role in this new movement. IBM’s World Wire network runs on and will even use ’s lumens to settle some transactions. Explaining the choice to use , :
“Personally, I think could very well serve as a viable settlement instrument. We’ve started with Lumens, which is the native asset of the network, but we already have the capacity to introduce other that could include or Ether.”
was founded by former founder Jed McCaleb.
Published at Tue, 19 Mar 2019 13:14:44 +0000