Ripple CEO, Brad Garlinghouse praises the launch of the JPM Coin, but also denies the idea of its potential of coin adoption in banks. In the interview at fourth annual DC Blockchain Summit, he shared his view on the coin, when questioned about its usability factor and adoption by other banks.
As the conversation went through, Brad said he thought it was great for crypto industry to have major financial players like JP Morgan leaning in. However, the Brad Garlinghouse gagged saying,
That’s the only nice thing I’m going to say about this.
While his interview with the Nasdaq reporter Jill Malandrino, he also shared his opinion on the launch of the JPM Coin saying,
This guy from Morgan Stanley was interviewing me, I said ‘So, is Morgan Stanley going to use the JPM Coin?’ And he said ‘probably not.’ So, well is Citi going to use the JPM Coin? So, does that mean we’re going to have all these different coins? Are we back to where we are with lack of interoperability? I don’t get it.
The Ripple CEO speaking about the importance of Blockchain said,
Tweeting about the missing point in JPMorgan he said,
Recalling another conference which Brad Garlinghouse attended last year, he shared his point of view saying,
Coin? Is BBVA? Is PNC? And the answer is no. And so does that we’re going to have all these different coins, and does that mean we’re back to where we are with lack of interoperability? I don’t get it.
Recently, Ripple was regularly promoting its Distributed Ledger Technology [DLT] to the financial institutions for payments. Eventually, the reason for his statement was that a bank creating its own stablecoin usually raises the same problems that DLT is supposed to solve.
Speaking about the second major objection to JPM coin, the Ripple CEO said
“So, let’s think about this. JPM Coin, they announced for institutional customers, if you give them a dollar in deposits, they’ll give you a JPM Coin that you then can move within the JPM ledger.
Wait a minute, just use the dollar! I really don’t understand. If you’re just moving within the JPM ledger, and it has to be dollar-to-dollar, one-to-one backing, I don’t understand what problem that solves.”
Furthermore, Malandrino asked Garlinghouse about the need for regulatory certainty in the U.S. to which Brad gave a brilliant reply:
Brad also explained that JPM Coin is also launching AOL after Netscape’s IPO.