Ripple CEO Says JPM Coin Lacks Interoperability: ‘Just Use the Dollar, I Don’t Get It!’

Ripple CEO Brad Garlinghouse says the recently announced stablecoin of US banking giant JPMorgan Chase lacks interoperability.

Ripple (XRP) CEO Brad Garlinghouse says the recently announced digital asset of US banking giant JPMorgan Chase lacks the interoperability that would make it a significant innovation. Garlinghouse made his comments during an interview at the 4th annual DC Blockchain Summit in Washington DC on March 6.

As reported, JPMorgan Chase announced the upcoming launch of its new blockchain settlement offering in mid-February: a stablecoin called JPM Coin, which will be backed 1: 1 by the bank’s USD reserves.

Alluding to suggestions from multiple industry commentators that the bank’s currency could be a direct competitor to Ripple’S XRP, Garlinghouse dismissed the currency’s usefulness because it remains an in-house proprietary asset, and that its exclusivity is likely to lead to every major bank issuing its own currency. This, he says, will lead to the exact same fragmentation that characterizes the financial services industry today:

“This Morgan Stanley guy was interviewing me last week, and I asked him, Will Morgan Stanley then use the JPM Coin? Probably not. If you cite use? […] will PNC? And the answer is no. So we’re going to have all these different currencies, and we’re back to where we are: there’s a lack of interoperability.”

Garlinghouse further intervened in JPM Coin’s apparent exclusivity, arguing that:

“Let’s think about this. [JPM] announced the JPM Coin for institutional clients. If you give them a dollar as a deposit, they will give you a JPM Coin, which you can then move in the JPM ledger. Wait a minute, just use the dollar! I don’t really understand […] what a problem it solves.”

Throughout the interview, the only thing Garlinghouse conceded to JPM Coin was the potentially positive effect “for the blockchain and crypto industry to have players like JPM inclined.”That’s the only good thing I’ll say about this,” he joked.

As previously reported, the research arm of top crypto exchange Binance has similarly judged that, as a proprietary and centralized network, JPM Coin is unlikely to be taken advantage of by competitors in the banking sector, who may well choose to launch their own native digital tokens in the future.

In terms of inter settlement, Binance Research further argued that as a closed-net solution, JPM Coin is unlikely to compete directly with XRP, given the latter’s ambition to serve as a “multi-bank mediator currency between fiat / crypto currencies and any fiat products.”

However, Binance stated that internally, JPM Coin could have a significant material impact on improving the cost and efficiency over time of traditional financial services.

Garlinghouse has previously stated that JPM Coin “misses the point” of crypto, arguing that introducing a closed network today is like launching AOL after Netscape’s IPO.

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