S is JPMorgan’Coin a serious competitor to Ripple?
Home News Is JPMorgan’s Coin serious competition for Ripple?
Marcel Knobloch –
The launch of its own digital Assets of the financial giant JPMorgan has caused heated discussions in the international crypto sector. Some experts see a great opportunity in this step, other prominent voices, such as the CEO of Ripple sees the project not sustainable.
JPMorgan has brought its own Stablecoin “JPM Coin” on the market that is similar to Tether or TrueUSD, tied to the value of the dollar. According to the statements of the company, the focus is for the time being, large sums of money from the Bank’s customers quickly and in a cost effective internal move. To what extent can, however, be the Stable Coin on the relevant exchanges for Trading used noc is so far largely unknown. The project is in the crypto scene, however, is not uncommon.
In 2016, the four major banks have entered into a cooperation to the Utility Settlement Coin, a digital Asset to the rationalisation of cross-border transactions and reduce fees and faster processing of Referrals. UBS introduced the idea, among other things, Deutsche Bank, Santander and BNY Mellon. Continue to NEX, Barclyas, CIBC, Credit Suisse, HSBS and MUFG are on Board. The test phase has already been launched in the middle of last year, but only a few results are today to the light of day leaked.
Ripple-in-chief, Brad Garlinghouse, a Bank-issued digital Assets is an unrealistic and misguided solution for the industry. In an Interview with Garlinghouse explains why banks support crypto-currencies in his opinion is doomed to Failure. Here, two different scenarios are conceivable (freely translated):
A of a Bank-issued digital Good can only be truly handled efficiently between the banks that issued it. Then two scenarios can arise.
Scenario 1: All banks around the world put aside competition-related and geopolitical differences, the same digital Good, you agree to their rules and govern your use of harmony. Great Opportunities.
Scenario 2 (more likely scenario): banks which are not members of emission group, their own digital assets with its own rules and Governance.
When banks of various digital assets to settle groups of transactions together, you need to values of markets between their unique digital assets or the trade between your digital assets and a common Notwährung. What a mess!
If each Bank has launched its own digital Asset, the payments to be made over the entire globe, could be created with a Wealth of new currencies that flood the market. Ripple tries to prevent exactly this, and provides, therefore, an infrastructure that can be used by every financial institution in the world quickly and easily (freely translated):
We are firmly convinced that banks are in need of an independent digital Asset, in order to enable a really efficient resolution, and we are of the view that XRP for this role is best placed. It goes back to the basics of what makes digital Assets unique and special – they are universal currencies, which means anyone can use it as a unit of Value anywhere in the world. This universality provides digital Assets global reach and the possibility of faster-than-traditional Assets to settle.
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