Brad Garlinghouse, the CEO of Ripple (XRP) has aired shared his view on the recently launched crypto asset by JPMorgan Chase; JP Morgan Coin during an interview at the 4th Annual DC Blockchain Summit in Washington D.C. on Wednesday, March 6.
Garlinghouse feels that the digital asset lacks the interoperability that would classify it as a significant innovation.
As previously reported, the US banking giant announced the forthcoming introduction of its new blockchain settlement offering a few weeks ago. The coin, dubbed JPM Coin, is a stablecoin pegged to the US Dollar and backed at the ratio 1:1 by the bank’s US Dollar reserves.
Garlinghouse not Impressed by JPM Coin
In contrast to the various industry expert’s comments that the bank’s coin could potentially be a major competitor to Ripple’s XRP, Garlinghouse apparently doesn’t fancy the JPM coin as he dismissed its usefulness on the grounds that it remains a proprietary in-house asset. The Ripple CEO also feels that JPM Coin’s exclusivity could encourage other major banks to issue their own crypto coin.
According to Garlinghouse, the exclusivity of the new crypto asset could lead to the same fragmentation that typifies the financial services sector at the moment:
“This guy from Morgan Stanley was interviewing me last week, and I asked him, so is Morgan Stanley going to use the JPM Coin? Probably not. Will Citi use it? […] Will PNC? And the answer is no. So we’re going to have all these different coins, and we’re back to where we are: there’s a lack of interoperability.”
JPM Coin Misses the Point
Garlinghouse, who had previously commented that the JPM Coin “misses the point” of crypto introduction, argued that launching a closed network today could be directly compared to launching AOL after Netscape’s IPO.
While talking about JPM Coin’s apparent distinctiveness, Garlinghouse joked:
“Let’s think about this. [JPM] announced the JPM Coin for institutional customers. If you give them a dollar as deposit, they’ll give you a JPM Coin, that you then can move in the JPM ledger. Wait a minute, just use the dollar! I really don’t understand […] what problem that solves.”
One fact that Garlinghouse never disputed during the course of the interview was that the JPM Coin has positive effect “for the blockchain and crypto industry to have players such as JPM leaning in.” “That’s the one good thing I’ll say about this” he quipped.