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Happy Valentine's Day from JP Morgan


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Did you read that 100+ post thread in the 2 minutes since I pointed you to it?  That's my "newbie" objection. We've done this.  I showed you where.  You don't want to read it, you want to teach us all

No Commercial bank or Stablecoin will ever be able to maintain a "first mover advantage" over Central Bank issued CBDC. There is a difference between... "money in the bank", aka bank liabilities.

1)  Anytime some newbie says "let's examine our collective biases" (apropos of me not asking), that's flag #1. 2)  Anytime some newbie says, implicitly, in their opening statement, "if you don't

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1 hour ago, mandelbaum said:

JPMorgan launches an Ethereum based stablecoin, and people target XRP as the bankster "coin".

Brilliant.

... lol, indeed... and they (the maximalists) root it on... hoping it will put an end to XRP..... irony...... 

Edited by EcneitapLatnem
tipping point is near.... very near.... so close... watchout below.........
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8 hours ago, jheff said:

Why would a big bank use Ripple's services and XRP if they can either a) develop their own or b) use JPMC.

Because other banks don't accept JPM's coin, because the receiving bank doesn't trust JPM, or because they have no prior relationship to JPM?  It's a big world out there, and as big as JPM is this still doesn't make dollar pegged stable coins able to settle funds cross-border.  Before you accept everything cnbc (comic book of the financial industry) has to say it does help to search this site for the tech details on cross-border settlement.  This has been hashed over about a million times on here sir.  Thanks!

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1 hour ago, xrphilosophy said:

this still doesn't make dollar pegged stable coins able to settle funds cross-border

And transfer value cross-platform, cross-network. That is where pure digital assets that aren't pegged to anything, and do not require anyone's permission to transact, will shine.

That being said, it is about time real world disrupting usecases for digital assets not just go "live", but are actually used in a meaningful way. That takes longer than I expected.

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When you look at their own description of the coin, two things stand out.

First, it's not just pegged to the dollar, it's pegged to the dollars their clients have on account.

Second, they've said it is designed to settle internal accounts instantly, but that its use for settlement has not been determined. This is digital IOU transfer, plain and simple. They've eliminated the need for checks. That is all.

A second bank will trust the coin inasmuch as they trust the quality of JPMs books. Outside use of the coin will still require settlement time, and while that could happen fast, I'm not worried until that settlement can be secured and done in seconds.

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This chat room seems to have degenerated to the level of Facebook, constant "gotcha!" and ad hominem attacks.

It seems obvious that JPM is attempting to duplicate the power and control of the dollar as world reserve currency by replacing it with a reserve digital currency. The SWIFT network has been used as a political weapon for decades and the central bank does not want to relinquish it as a possible destabilizing lever. JPM could compel SWIFT banks to join the network and use their JPM coin.  This is in direct competition to Ripple's stated goal of complying with regulators to enable rapid intercontinental monetary exchange.

I see this as an existential threat to Ripple.

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I would think SWIFT would be compelled to use a Central Bank Digital Coin (pegged to the dollar) not a JPM coin pegged to the dollar, wouldn't it?  Other countries and foreign banks don't necesarily have trust nor relationships with JP Morgan and company and their dollar pegged assets.  Most banks around the world do not even have nostro vostro relationships with other banks. As far as some SWIFT banks and the network- there is no scratch of evidence that they plan to swith to JPM dollar pegged coin to instantly settle cross-border payments, because technologically it cannot. 

There is a huge market which digital assets are after, and only a fraction of that is the current SWIFT network, which countries like China, Russia, England, Germany, and France (not to mention Cypress, Zimbabwe, Ecuador, Argentina, Brazil, Italy, Greece, Sweden, Iceland et al) are rebelling against in the first place. 

The SWIFT network is having tremendously difficulty holding onto its legacy relationships because other sovereign countries and central bankers are recognizing they technologically can get away from SWIFT control, expenses, and slow processing time, and move into the future.  Other countries want nothing to do with the dollar as a global reserve.  And in fact we see this changing in certan areas.  Also keep in mind that unlike certain digital assets the dollar loses value every year because they are made as fast as cotton candy at the carnival.  That's not appealing to hold.   

This is why one would use XRP or another means to transfer value.  JP Morgan coin is a bandaid which may have a couple years of life, MAYBE, if it ever gets off the ground, but is not the present nor the future, nor is it the the solution other countries and other central banks including other SWIFT member banks seek. If anyone has doubt about this please read the white papers offered on the Bank of International Settlements site. They do a pretty blunt review of the problems and risks involved in current correspondent banking as it exists today, and why this has to change to meet the needs of a global technological future.  JP Morgan is not the driver of this long held understanding.

Thank you JPM however, for helping to further legitimize this space.  We welcome your JPM coin as part of the fray that's for sure. At least I do...

 

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15 hours ago, RipDip said:

I personally don't see how JPM Coin can be useful aside from internal settlements. Why would 10,000 plus other banks want to hold a quasi currency that is issued by one individual bank unless there is a mass consensus by a consortium of banks on the safety and the stability of the JPM coin. While still directly competing with JP Morgan in the same industry. 

If your argument is that it can be a bridge currency similar to XRP, who will be the intermediary party that holds this one specific bank coin for on/off ramp with whatever fiat JPM coin is bridging. 

JPM coin is the bridge currency. Here is a scenario: JPM Corporate client needs to pay for industrial machinery in yen. They escrow cash, JPM issues them JPMC and sends JPMC to a) the wallet of the seller of the machinery or b) a wallet of the client and converts at the JPMC/Yen spot rate to pay for the machinery. JPMC/Yen spot rate will be at the USD/Yen spot rate because the USD is escrowed before coins are created so 1 JPMC = 1 USD. The flow of funds would be USD -> JPMC -> Yen. If this scenario was to be mirrored with XRP this would be the flow of funds: USD -> XRP -> Yen.

No exchange rate risk of JPMC since it is pegged to USD. If clients are banking with JPM why would they switch over to Ripple and XRP if JPM has their own coin. People don't consider the value clients place on past relationships and trust. I'd bet money on CEOs and CFOs sticking with the status quo and the conservative approach to just stick with JPM. Why go from Bank Coin 1 to XRP to Bank Coin 2 when Bank Coin 1 and 2 are backed by fiat? Just create a Bank Coin 1/Bank Coin 2 trading pair.

All of this just shows banks would rather develop their own coin in-house than work with Ripple. Centralization and the selling points of XRP don't matter to them. The banking system is already centralized.

 

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14 hours ago, LordVetinari said:

The day that everything "Runs on Ripple" is just not going to happen. The day that everything uses Quorum is also not going to happen. 

Have you taken into consideration that Ripple does not require market domination for XRP to be a very valuable and utilized asset?

 

Yes, I have and that is a good point. Large financial institutions that have the money to develop internal coins won't use XRP. But the premise of value I see on these forums that take a stab on the intrinsic value of XRP claim mass adoption. If JPM, GS, BAML, and MS all make their own coin that takes away a large percentage of the remittance market considering they have most if not all of the largest corporate banking clients in the US. Maybe XRP gets used by overseas banks. I don't know about that market so I'm not going to speculate, but this hurts business for Ripple and XRP in the US.

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24 minutes ago, jheff said:

JPM coin is the bridge currency. Here is a scenario: JPM Corporate client needs to pay for industrial machinery in yen. They escrow cash, JPM issues them JPMC and sends JPM to a) the wallet of the seller of the machinery or b) a wallet of the client and converts at the JPMC/Yen spot rate to pay for the machinery. JPMC/Yen spot rate will be at the USD/Yen spot rate because the USD is escrowed before coins are created so 1 JPMC = 1 USD. The flow of funds would be USD -> JPMC -> Yen. If this scenario was to be mirrored with XRP this would be the flow of funds: USD -> XRP -> Yen.

No exchange rate risk of JPMC since it is pegged to USD. If clients are banking with JPM why would they switch over to Ripple and XRP if JPM has their own coin. People don't consider the value clients place on past relationships and trust. I'd bet money on CEOs and CFOs sticking with the status quo and the conservative approach to just stick with JPM. Why go from Bank Coin 1 to XRP to Bank Coin 2 when Bank Coin 1 and 2 are backed by fiat? Just create a Bank Coin 1/Bank Coin 2 trading pair.

All of this just shows banks would rather develop their own coin in-house than work with Ripple. Centralization and the selling points of XRP don't matter to them. The banking system is already centralized.

 

If each banks and cooperates  develope their own coin how many corridors are needed? The network would be even more fragmented than now. 

If there is a bridge asset, corridors are not needed between each coins.

This is ripple’s vision of internet of value.

what I know for sure is jpcoin is not suitable for making the internet of value. 

 

Edited by quan
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