Ripple CEO Brad Garlinghouse has scrutinised the recent launch of JPM Coin by claiming that “no other bank will use it” while speaking at the Chamber of Digital Commerce’s Blockchain Summit in Washington.
The 48-year-old, whose company is behind the XRP token that is designed to be used by banks, admitted that it was “great” to see major players enter the cryptocurrency space.
But his positivity didn’t last for long, as soon after he said: “That’s the only nice thing I’m going to say about this.”
Garlinghouse added: “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? Is BBVA? Is PNC? And the answer is no.”
His skepticism on the need for JP Morgan’s native cryptocurrency continued as he suggested it may bring about the exact problems digital assets tried to solve in the first place.
“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,” he continued.
“If you give them a dollar for deposits, they’ll give you a JPM Coin that you can then move within the JPM ledger. Wait a minute, just use the dollar! I 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.”
JPM Coin has caused controversy in the cryptocurrency space over the past few weeks. Click here to see Coin Rivet’s panel discussion on whether the move by JP Morgan is ultimately a good thing or not.