Ripple CEO Brad Garlinghouse dismissed JP Morgan Chase’s new stablecoin, stating the product’s likelihood of adoption is low and questioned its utility.
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During the Chamber of Digital Commerce’s D.C. Blockchain Summit in Washington, Garlinghouse stated he believes major financial institutions “leaning in” to cryptocurrency adoption is “great,” however, he believes the bank will have a hard time getting other competitors to use it.
“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.”
In his opinion, a bank creating its own stablecoin is just recreating the same problems blockchain technology is supposed to solve.
“So, does that mean we’re going to have all these different coins,” said Garlinghouse.
“Are we back to where we are with lack of interoperability? I don’t get it. 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!” he said. “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. Now, back to my first answer, if it solves the first [problem] of JPM leaning into crypto, yay. That’s all I got.”