Ripple CEO Doubts Usefulness Of JP Morgan Stablecoin
Brad Garlinghouse, CEO of the Ripple crypto project, stated that the release of the own stablecoin by the giant of the traditional economy JP Morgan will have a positive effect on the crypto industry in general. Nevertheless, a specialist questioned the usefulness of such assets, CoinDesk reports.
Garlinghouse, whose company develops the XRP digital currency, doubted the viability of the announced JPM Coin token. According to him, an employee of Morgan Stanley said in a conversation that the company would not use JPM Coin. Garlinghouse suggested that Citi, BBVA, or PNC would also not implement the stablecoin.
He noted that traditional financial organizations that create their own stablecoin risk to aggravate the problems the distributed ledger is intended to solve. In his opinion, if each bank decides to issue internal tokens, it will stop the development of the market and worsen the problems of interoperability of blockchain systems.
The specialist stated that he sees no point in using JPM Coin as a local currency within the bank system. He suggested to use the customary US dollar instead of the stablecoin, since JPM Coin is pegged to the dollar exchange rate in a 1:1 ratio. In his opinion, the tokenization of fiat assets has no logic in case all funds are kept on the one company’s balance.
Previously, the analytical department of Binance has published a report from which it follows that the stablecoin JPM Coin will not compete with XRP in the market.