Only yesterday, the most important bank within u. s. aghast the cryptocurrency and blockchain business by asserting it absolutely was working on launching its own cryptocurrency to form cross-border payments a lot of economical. – JP Morgan’s A new Cryptocurrency
The coin, known as ‘JPM Coin’ will however not be accessible to the public but will be used to settle the bank’s internal wholesale payments across the globe that have been estimated to be worth $6 trillion in daily volume. JPM Coin will also be pegged to the USD.
Ripple’s chief executive officer, Brad Garlinghouse, took to Twitter to explain that JP Morgan is missing the point with its new cryptocurrency project.
He compared the closed network of JPM Coin, as a step in the wrong direction. His tweet can be found below.
As predicted, banks are changing their tune on crypto. But this JPM project misses the point – introducing a closed network today is like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer https://t.co/39EAiSJwAz https://t.co/e7t7iz7h21
— Brad Garlinghouse (@bgarlinghouse) February 14, 2019
Bank Coins Still Are Not the Answer
In the tweet, Mr.
Garlinghouse named a 2016 article during which he explained that a bank issued coin will solely be economical if used internally by the bank that problems it.
In the article, he put forth two scenarios of how bank issued cryptocurrencies would be adopted.
Scenario one: all banks around the world overlooked competitive and government variations, adopt the same digital asset, agree on its rules, and harmoniously govern its usage.
Scenario 2 (a lot of probable scenarios): banks not within the supplied cluster issue their own digital assets with their own sets of rules and governance.
Bank Issued Cryptocurrencies Would Create ‘A Mess’
According to Mr.Garlinghouse, the second scenario would create a situation where the banking and currency landscape would be more fragmented than it is right now.
It would be a mess.
The result would be a good a lot of fragmented currency landscape than what we’ve got these days.
If banks of various digital asset teams wish to settle trades with each other, they’ll have to make markets between their unique digital assets or trade between their digital assets
and a common fiat currency.
What a mess!
To conclude the 2016 article, Garlinghouse explained why XRP is best suited for cross-border payments.
We powerfully believe banks want an independent digital plus to modify actually economical settlement and that we believe XRP is best positioned for that role.
It goes back to the fundamentals of what makes digital assets unique and special – they’re universal currencies, meaning anyone can use them as units of value anywhere in the world.
That generality provides digital assets international reach and also the ability to settle a lot quicker than ancient assets.
What are your thoughts on Brad Garlinghouse’s comments that bank issued cryptocurrencies area unit still not the answer?
Do you agree that bank issued coins can produce a lot of fragmented currency landscape than we’ve got today?
Please allow us to understand within the comment section below.
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