Brad Garlinghouse, the CEO of Ripple Inc. – has been a very outspoken digital currency bull. Ripple is a blockchain payment protocol that is based on the blockchain. The native currency of the blockchain project is XRP (XRP). Garlinghouse has been doing his best to promote and enhance the value of XRP (XRP).
Ripple solves a major problem in the cross-border settlement space. The firm has several products for processing cross-border payments at a very fast and cost-effective rate. However, there seems to be a new rivalry in the space. JP Morgan Chase, a Wall Street bank has now entered the digital currency space.
Garlinghouse Says JP Coin Lacks Interoperability
The bank recently announced the launch of its own digital currency. The digital currency of the bank is dubbed JP Coin. The bank reportedly announced the imminent launch of its own blockchain-based settlement offering in February. The new digital currency of the bank is a stablecoin. According to the bank, one token is backed by one USD reserve of the bank.
Brad Garlinghouse recently made an appearance at the 4th Annual DC Blockchain Summit. The event took place in Washington DC on the 6th of March. During an interview in the event, the CEO of ripple said that the digital currency of JP Morgan lacks interoperability. As a result, it lacks what it needs to be a significant innovation.
Several industry commentators have suggested that the new digital currency of JP Morgan would be a strong rivalry to XRP. In response to this, the CEO dismissed the usefulness of the coin. Adding that the digital currency is only a patented in-house asset. He said that the exclusivity of the coin might trigger other top banks to create their own digital currencies.
In a statement, Garlinghouse said:
“This guy from Morgan Stanley was interviewing me last week, and I asked him, so is Morgan Stanley going to use the new digital currency? Probably not. Will PNC use JP Coin? Will Citi use it? And the answer is no. So we are going to have all these digital currencies. And we are back to where we are: there is a lack of interoperability.”
The CEO further to the ostensible exclusivity of the digital currency. He said:
“Let us consider this. JP Morgan announced the JP Coin for institutional customers. If you give them a dollar as deposit, they will give you a JP Coin that you can move in the JP Morgan ledger. Wait a minute, just use the dollar! I really don’t understand, what problem that solves.”
All through the interview, Garlinghouse said only one thing about JP Coin which was considered positive. The only good thing he said was the potentially positive impact ‘for the digital currency and blockchain industry to have players like JPM coming up.’ He jokingly said, “that is one good thing I can say about this development.”
Garlinghouse had earlier commented on the coin right after its launch. The CEO said that JP Coin misses the point of digital currency. He added that intruding a close network in this era is like launching AOL after the IPO of Netscape.
XRP (XRP) Price Today – XRP / USD
At the time of writing, XRP (XRP) is trading at $0.319 after a decrease of about two percent over the past twenty-four hours. The current market cap of the digital currency is $12.91 billion. The trading volume of the coin over the past twenty-four hours is $675.89 million.