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JP Morgan to launch its own cryptocurrency

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4 minutes ago, Tripple said:

JP Morgan have created... Drum roll, please... Tether

But again, they clearly think their stablecoin is a better way to solve the nostro / vostro issue than XRP. And they clearly think even though JPM coin is internal, it still has cross-border potential because of all their banking and corporate partners, so their 'internal' is in fact a network. 2019 boys. Buckle up. This ain't no marathon.

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2 minutes ago, 7Bs said:

But again, they clearly think their stablecoin is a better way to solve the nostro / vostro issue than XRP. And they clearly think even though JPM coin is internal, it still has cross-border potential because of all their banking and corporate partners, so their 'internal' is in fact a network. 2019 boys. Buckle up. This ain't no marathon.

Blockchain is the new '.com'... JP Morgan can't let those folks over at MUFG have their own blockchain payments network and internal stable coin without having one themselves. These 'stable coins' are simply financial instruments that let these incumbents throw value around on their own balance sheets in a more efficient manner - a whole different kettle of fish.

I wonder what the exchange rate will be between JPCoin and MUFGCoin in future, in terms of XRP of course.

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1 hour ago, Chris_Reeves said:

The JPM Coin will be issued on Quorum Blockchain

The JPM coin is not as threatening as the network. Don't confuse the vessel with it's content. This is JPM's way of controlling the pipeline.

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2 hours ago, ecent said:

I mean this with all due respect but to think that JPM Coin is a threat to the Ripple use case for XRP is to essentially misunderstand the structural model of XRP.

  • Why would another bank trust JPM Coin?
  • If another bank makes their own coin, how do they settle between their coin and JPM Coin?
  • Why and how is a stablecoin a threat to a non-fiat backed digital asset?

Counter party risk is a real thing and XRP solves that. Stablecoins issued by banks does not.

These are two entirely separate use cases. 

 

My opinion on your questions:

- Why would another bank trust JPM Coin? As they mentioned they do a great deal of business with other banks and often perform certain functions smaller banks can't on their own.  It stands to reason that there is a certain degree of trust or that JPM can use leverage to 'force' a client bank to use this tech.  If the value of the coin is always set to $1, then it's to be expected that it would be more trusted than a coin that fluctuates in value.  This is like asking why Swift exists - clearly the banks didn't trust each other as competitors but they still saw fit to form an international consortium.  

- If another bank makes their own coin, how do they settle between their coin and JPM Coin?  Obviously I am no techie, but I think Swift would be the answer although it may not be for some time.  Swift (and the banks that make it up) are not interested in losing their position to XRP.  It stands to reason they are hiring talent in the programming field who can figure out how to do this - as much as I like Ripple, they're not the only brilliant folks in the space.  

- Why and how is a stablecoin a threat to a non-fiat backed digital asset?  I am not so sure on this one - but I would think it's all about the functionality of the coin as opposed to whether it's not backed by fiat.  If they produce something with similar functionality as XRP, the thing in their favor is the JPM Chase name, the Swift name, their history and network of customers, etc.  I would think that makes it a threat - it would be foolish to assume it isn't in my opinion.

I have to say this is the first time I am actually worried about XRP.  I think it speaks to the use case Ripple is pursuing, and it should have been obvious that this was where things were going.  In my humble opinion this constitutes a real threat to our chosen DA, as global familiarity/trust with JPM and other large banks like them will provide them with a platform for this tech that XRP and Ripple do not have globally.  I could be entirely mistaken and in fact I hope that I am - but to me, these questions do not automatically answer themselves in favor of XRP and Ripple.  I certainly hope these are two different use cases but the banks formed Swift in spite of competing interests, I do not think it's much of a stretch to consider they would do so again, especially if they can now just create their own DA.

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4 minutes ago, 3Tom said:

The JPM coin is not as threatening as the network. Don't confuse the vessel with it's content. This is JPM's way of controlling the pipeline.

Maybe for a bit.  But they’re just a closed silo that will eventually fail in an open IoV.  Prodigy, AOL, etc.

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1 hour ago, 7Bs said:

their 'internal' is in fact a network

Sure, but a closed network in which you and I cannot participate, nor the 2 billion unbanked with mobiles. The advantage of the "XRP network" is that it is open, and therefore has a much wider reach into an immensely larger diversity of markets, which is a requirement if you want to send value from any A to any B.

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JPM may be monolithic but they can force SWIFT member banks to use their network. That would effectively capture the establishment banking community, which is Ripple's stated goal.

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1 hour ago, Tripple said:

Blockchain is the new '.com'... JP Morgan can't let those folks over at MUFG have their own blockchain payments network and internal stable coin without having one themselves. These 'stable coins' are simply financial instruments that let these incumbents throw value around on their own balance sheets in a more efficient manner - a whole different kettle of fish.

I wonder what the exchange rate will be between JPCoin and MUFGCoin in future, in terms of XRP of course.

CBDCs could be the bridge asset of walled gardens. I posted this on Zerpening a bit ago: Either the bridge assets are the native central banks issuing final clearing OR there is one supra- bridge asset and it is XRP because the various native CBDCs filter into a hypothetical supra-IMF coin which is actually backed by XRP.

Edited by 7Bs

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