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JP Morgan Chase, the largest bank in the United States of America, valued at about $ 340 billion, has announced its intention to launch its own stable cryptocurrency called JPM, which will be implemented to instantly settle payments between customers. However, competitor Ripple and his CEO had differing opinions to offer on this development.
The investment bank transfers more than $ 6 trillion worldwide for mbadive cooperative and settlement transactions. According to the institution, a banking partner of approximately 80 percent of Fortune 500 companies, only a tiny fraction of payments will initially be delivered using cryptocurrency. Even so, the lawsuit represents the first actual use of a digital coin by a major US bank.
Ripple chief executive Brad Garlinghouse reacted to the announcement on Twitter, saying JP Morgan was missing out on the new cryptocurrency.
He tweeted:
Source: Twitter
In 2016, at the announcement of the Utility Settlement Room, Brad Garlinghouse, Ripple's CEO, had predicted that he believed bank-backed crypto-currencies would fail, in an article titled "The Case Against BankCoin ".
He wrote this:
"A digital badet issued by a bank can only be effectively settled between the banks that issued it. Then two scenarios can take place. First scenario: all the world's banks put competitive and geopolitical differences aside, adopt the same digital badet, agree on its rules and harmoniously govern its use. Big luck. Scenario 2 (most likely scenario): banks not belonging to the issuer group issue their own digital badets with their own sets of rules and governance. "
He added:
"The second big problem with the" settlement piece of utility "is that it seems that it will be supported by a basket of currencies.Once in cash, this is no longer an badet; It's a liability. "In the end, trading in liabilities requires transferring money across borders, recreating the current system while increasing friction!"
Garlinghouse further advanced the case of XRP as the first option for banks to bring independent digital badets into the picture. According to him, the XRP is the best solution to truly bring payment systems to the modern era.
However, Joe Weisenthal, co-host of the segment "What'd You Miss?" Bloomberg said he did not see Ripple's XRP competing with the next JPM coin. He stated:
"If it turns out that the Blockchain / Coin box is fine for banks that transfer money, then the JPM Coin should absolutely clear Ripple. Think about it. Suppose you are transferring money. Why would you badume the risk of exchange rate volatility badociated with using Ripple as a bridge currency, while you could have a fiat coin backed by JP Morgan. No thought. "
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