Is JPM Coin an Actual Competition to Ripple?

Although CEO Jamie Dimon considered Bitcoin a fraud, the majority of US bank will step into the cryptocurrency space with the introduction of JPM Coin.  At present, it seems like JPM Coin will operate as a centralized stablecoin. Nonetheless, Jame claims that JPM Coin could be consumer one day.

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Binance , the market research arm of the cryptocurrency exchange, has released an in-depth report on JPM Coin. According to the reports, JPM Coin might cause a disturbance in the existing stable coin industry.

The report claims that:

‘Currently, stable coins issued by banks are designated to serve a specific purpose. As a result, do not directly compete with the existing stable coins.’

Ripple might be in danger!!

Although, the JPM Coin will be created under a private blockchain and is initially used within the J.P. Morgan network, the beginning might affect other financial firms by building their own stablecoin operating on a private blockchain. However, if banks their interests aligned in the evolution of interbank settlement solutions, Ripple might suffer from high competition as these banks possess  their own bunch of blockchain solutions.’

Moreover, banks already are major element of the fiat-collateralized. Stablecoin model as these financial firms provide custody for the funds of stablecoin issuers. Large banks Like J.P. Morgan could potentially hold both their large asset bases and partnerships to expand the influence and create an impact of their stablecoin offerings.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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