Ripple had an idea that JP Morgan, an international banking titan, had also made use of the Blockchain to conduct transactions from anywhere faster, cheaper and more efficient than conventional banking systems. JP Morgan has changed Ripple’s distributed ledger with the Quorum Blockchain that came from Ethereum and changed the XRP Coin with its own, JPM Coin.
JP Morgan claims that JPM Coin, which theoretically shouldn’t have even been called a Cryptocurrency, combines both traditional finance and Cryptocurrency. It uses Blockchain technology to perform intercontinental transactions faster while avoiding the volatility like that of XRP’s.
The JPM Coin can be sent and received by JP Morgan customers back and forth, which directly exchange them from USD on a ratio of 1 to 1, and makes it more appealing than XRP, which is highly volatile.
In other words, a big company has copied a startup company and has made their business better. These kinds of things don’t really work when startup companies do them. But in defense of the CEO of Ripple, Brad Garlinghouse, they are not afraid fighting the titans of Wall Street.
In a Tweet he sent, Garlinghouse stated that JP Morgan’s Cryptocurrency misses the point. A former executive from Yahoo defined that JPM Coin relies on an “isolated network”, which doesn’t really make it innovative.
It all boils down to this: are XRP users loyal, guessers, or are they both? Loyal users will use XRP to pay for transactions for its underlying technology. The user would only use XRP for purchases because it’s relatively cheaper and quicker. Then on the receiving end, XRP would be traded to traditional money instantly.
Guessers, on the other hand, would buy XRP in the hope that it goes up in value and then would sell it once it’s high enough. The same situation won’t apply for a bank coin just like JPM Coin, the job of which is to perform processes in real time.
JP Morgan has the potential of getting the customers of XRP who use them for remittance, and Ripple would have to get its objective pointing on the right direction. A Coin that isn’t volatile that would be used for transactions between banks could be the solution.
(Jet Encila is a journalist, editor and freelance writer from the Philippines).