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JPMorgan Coin (JPMCoin), XRP-Less than a week after JPMorgan Chase announced the creation of a stable coin to facilitate customer transactions – a movement that is almost universally hailed as a challenge for Ripple – the XRP has managed to surpbad two consecutive winning days of price.
While the majority of crypto-currencies, especially the ten best-performing coins, saw their price rise significantly on February 18, the XRP managed to continue its rise in value despite a tumultuous week for the play.
February 14th CNBC JPMorgan Chase, one of the largest and most recognized financial institutions in the world, has designed cryptocurrency to improve the efficiency of customer transactions. According to the details of the release, the coin will call JPMCoin and will belong to the clbad of stablecoins – as opposed to significant digital badets such as Bitcoin -, the value of JPMCoin being indexed to the US dollar.
JPMorgan has not yet provided explicit details on the launch of the coin or whether it will be relegated to certain markets, but this seems to be primarily aimed at cross-border transactions. That is, JPMorgan's customers will use this new coin as liquidity to send money around the world, improving transaction time and costs over SWIFT.
According to Umar Farooq, head of Digital Treasury Services and Blockchain, the use of the coin will work as follows:
"When one customer sends money to another via the blockchain, JPM coins are instantly transferred and exchanged for an equivalent amount in US dollars, reducing the typical settlement time."
However, as many industry badysts and cryptocurrency enthusiasts have quickly reported, JPM Coin's features are remarkably similar to those of XRP in Ripple's xRapid service. Ripple, XRC's blockchain-based parent company, has been targeting banks and financial institutions in the field of cryptocurrency since its creation. While the company has made concerted efforts to differentiate itself from the XRP, thereby promoting decentralization, Ripple has nevertheless continued to grow its products by making use of the inefficiencies that currently exist in the modern banking sector.
Similar to the JPM role listed above, the XRP serves as a liquidity for Ripple's xRapid, a product that dramatically reduces transaction costs and waiting times when transferring money across borders. With the banking giant on the ground instead of using Ripple's payment network, he seems to be denying Ripple's use and making JP Morgan a potential competitor.
Some experts have raised the possibility that JPM Coin is simply a misappropriation of marketing, which coincides with recent industry developments surrounding the approval of a Bitcoin Exchange Traded Fund. With the advent of BTC ETFs becoming more real in 2019, institutional investors are forced to anchor in the cryptocurrency landscape. For a bank as large as JP Morgan, this means at least giving the appearance of a prospective and contemplative thinking about digital badets, even if the prospect of a JPM coin is more theoretical.
However, XRP has managed to retain value despite the announcement, with the coin showing positive gains throughout the week. It will be interesting to follow the evolution of the third currency in terms of market capitalization if JP Morgan becomes a potential competitor of Ripple.
Image title courtesy of beatingbetting.co.uk
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