This is why JP Morgan’s new cryptocurrency can threaten Ripple: “A no brainer”

This is why JP Morgan's new cryptocurrency can threaten Ripple:

Image source: Shutterstock

Christian Ploog

christian.ploog@trijo.co

Many now wonder if JPM Coin will compete with Ripple.

On Thursday, the big American investment bank JP Morgan announced that they intend to launch their own cryptocurrency called JPM Coin. The idea is for the coin to make real-time payments between the bank’s major clients instead of using the traditional bank wire system, which can sometimes take several days.

The company Ripple has a blockchain network that also aims to provide a cheap and fast infrastructure for payments and transactions between large financial institutions.

Now, voices are being heard that JP Morgan’s new coin can threaten the cryptocurrency xrp which the company Ripple issues.

“A no brainer”

One of those who believe that Ripple and xrp may be threatened is Joe Weisenthal who is editor at Bloomberg. He says that if JP Morgan’s new coin turns out to work well for banks to send money all over the world – then xrp’s days are numbered.

“Think about it, let’s say you were in the business of transferring money, why would you take on the exchange rate volatility risk associated with having ripple as a bridge currency, when you could have a fiat-coin backed by JP Morgan. No brainer”, Joe Weisenthal writes on Twitter.

“They are going to wipe the floor with Ripple”

Another who believes that JPM Coin can now threaten xrp is Tushar Jain at the crypto fund Multicoin Capital. He believes JP Morgan’s cryptocurrency will “wipe the floor with Ripple” because the banks prefer to use a coin developed by a bank rather than an external company as in Ripple’s case.

“Banks were obviously never going to use xrp for settlements and enrich Ripple Inc (who owns more than half of all xrp). They would rather enrich themselves instead! Kudos to JPM for being first. They are going to wipe the floor with Ripple”, Tushar Jain writes on Twitter.

Now, it remains to be seen what a possibly increased competition can do with the price of xrp.

Follow Trijo News on FacebookTwitter and Telegram.

Testa Trijos kryptobörs - helt utan avgifter!

Related articles

Keep up with the latest news

close icon

Testa Trijos kryptobörs - helt utan avgifter!

Som Trijo News-läsare får du chansen att testa vår beta redan i dag.