JPMorgan’s Cryptocurrency Will “Obliterate” Ripple (XRP), Says Bloomberg Editor

On February 14, 2019, JP Morgan launched a stablecoin known as the JPM Coin. Based on the purpose and function of the cryptocurrency, it looks to be in direct competition with Ripple’s XRP. A number of industry stakeholders have been weighing in on what this move by JP Morgan would mean for Ripple.

Joe Weisenthal, co-host of “What Did You Miss?” on Bloomberg TV, known on Twitter for sometimes sharing his views on crypto-related matters, responded on what the JPM coin might mean for Ripple’s XRP.

Weisenthal began his argument with the premise of blockchain becoming a more effective way of moving money for banks. With that, he states it would be more reasonable for banks to use the JPM stablecoin than to use Ripple’s XRP. The suggestion that the XRP cryptocurrency might be obliterated is hinged on the fact that Ripple counts on regulated institutional customers.

The argument was further reinforced with the exchange rate volatility risk associated with using XRP as a bridge currency. He suggests that the fiat-backed JPM coin sounds to be far more appropriate for the customer-base Ripple is targeting.

The JPM coin can be viewed as a form of short-term credit that is moved instantly, while the underlying transaction goes through the settlement process. Then when the actual money goes through, the coins are destroyed, as they are replaced by the money. In this wise, the JPM coin may not be in direct competition with other cryptocurrencies, but might steal the entire target market of Ripple.

There have been varying responses to this notion. One of the major concerns is the fact that JP Morgan, which has expressed negative attitudes towards Bitcoin and blockchain in the past, seems to be leading the charge of the banks into blockchain. The CEO of JP Morgan has made notable remarks in the past about the blockchain trend, saying Bitcoin is a fraud at one point.

Some stakeholders in the crypto space have weighed in their opinion on the matter, questioning the purpose of the XRP coin going forward. Tushar Jain, a managing partner at Multicoin Capital, stated that banks would not allow Ripple Inc. to become enriched by using XRP for settlements. He went further to hint that other banks will produce their own form of coin like JP Morgan just did.

While this development brings institutional legitimacy to the blockchain industry, it remains to be seen how cryptocurrencies like Ripple’s XRP will navigate this new trend and stay relevant.

11 Comments

  • Bitcoins and Gravy
    Posted February 16, 2019 10:13 am 0Likes

    JPM coin . . . hilarious!

  • RacerXrp
    Posted February 16, 2019 12:49 pm 0Likes

    JPMorgan’s coin which sounds like it hasn’t even been tested is a fiat based coin. XRP is a cross-border settlement solution. JPM’s coin will be intended for use between JPM customers only and tied to an over-printed dollar with no backing. How is this even considered a competition? It’s not even blockchain. Someone should check these facts before spreading such ill-conceived notions.

    • Bob
      Posted February 16, 2019 5:46 pm 0Likes

      JPM Coin will take over the world you will see. Hopefully then the scam riple will finaly die !

      • jc
        Posted February 17, 2019 11:10 am 0Likes

        Were you born stupid?

        • Bob
          Posted February 18, 2019 11:02 pm 0Likes

          It’s true and only a mater of time !!! Then i will be rich !!

          • Jake
            Posted February 20, 2019 9:32 am 0Likes

            no just no

  • BTFDNINJA
    Posted February 16, 2019 4:29 pm 0Likes

    This is so funny its unreal. jpm coin hahahahaha. so they are going to issue it as a form of credit until the transaction settles LMFAO.

  • Adonis
    Posted February 16, 2019 5:42 pm 0Likes

    Will be for internal use only as no other bank will touch it deerrrrr imagine BOA or HSBC signing on for JPM coin…. get real guys stop spreading FUD

  • Munson
    Posted February 16, 2019 7:30 pm 0Likes

    “JPM will wipe the floor with Ripple”…haha! I have never heard such nonsense in my life. JPM are not the first (and they are probably not going to be the last) bank to create a coin. This about getting the big boys in and crushing prices down so they make more profit……read between the lines, it’s an internal coin. What use is that in the cryptomarket. Exactly, pointless as it doesn’t even qualify as crypto. Keep hodling and watch how this pans out.

  • Mark Gale
    Posted February 16, 2019 11:56 pm 0Likes

    This is not news this is a click bait add , hope we will soon have a way to block all this garbage, Bloomberg Forbes etc.

  • Vee
    Posted February 17, 2019 3:51 pm 0Likes

    IMHO I think that most banks will have to create a coin of their own. I believe the IMF had even encouraged them to do so. They’ll be able to have a feel and learn the ins-and-outs of how “digital money” can move within their institution, once they discover how efficient it can be, they’ll be eager to use the tech with other banking institutions for payments. That, will be Ripple’s cue to step in and make that interoperability possible.

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