JP Morgan Chase, the biggest bank in the United States of America, valued at about $340 billion dollars, has announced that it was going to launch its very own stable coin cryptocurrency named JPM, which will be implemented to instantly settle payments between clients. However, competitor Ripple and its CEO had differing opinions to offer on this development.
The investment bank moves more than $6 trillion around the world for massive cooperation payments and settlements business. According to the institution, which is a banking partner to about 80% of the Fortune 500 Companies, only a tiny fraction of payments will initially be transmitted using the cryptocurrency. Even so, the trial represents the first real-world use of a digital coin by a major US bank.
The CEO of Ripple, Brad Garlinghouse, responded to the announcement on Twitter, saying that JP Morgan is missing the point with its new cryptocurrency.
In 2016, when the Utility Settlement Coin was announced, Ripple CEO Brad Garlinghouse had predicted that he believed bank-backed cryptocurrencies would fail, in an Op-ed titled “The Case Against BankCoin”.
He wrote that:
“A bank-issued digital asset can only really efficiently settle between the banks who issued it. Then, two scenarios can play out. Scenario one: all banks around the world put aside competitive and geopolitical differences, adopt the same digital asset, agree on its rules, and harmoniously govern its usage. Fat chance. Scenario two (the more likely scenario): banks not in the issuing group issue their own digital assets with their own sets of rules and governance.”
He further added:
“The second big problem with the ‘utility settlement coin’ is it seems it’ll be backed by a basket of currencies. Once backed by cash, it’s no longer an asset; it’s a liability. Trading liabilities then ultimately requires moving cash across borders, re-creating today’s system but adding more friction!”
Garlinghouse further put forward the case of XRP being the premiere option for banks to bring independent digital assets into the picture. According to him, XRP is the best shot at truly bringing payment systems into the modern era.
However, Joe Weisenthal, co-host of Bloomberg’s “What’d You Miss?” segment, has said that he fails to see Ripple’s XRP compete with the forthcoming JPM coin. He stated:
“If it turns out that the Blockchain/Coin framework to be a good one for banks transferring money around, then the JPM Coin should absolutely obliterate Ripple. Think about it, let’s say you were in the business of transferring money, why would you take on the exchange rate volatility risk associated with having Ripple as a bridge currency, when you could have a fiat-coin backed by JP Morgan. No brainer.”
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XRP TipBot comes back online after a tiny downtime; Nothing to be worried about, says Wietse Wind
XRP TipBot’s website and the corresponding application suffered a downtime on June 23, 2019 for a few hours, during which the application wasn’t showing the balance of users. The website and the API for TipBot instead, displayed a “500 Internal Error.”
A Twitter user, @BlueNETGaming, tweeted Wietse Wind, inquiring the same. Wind confirmed that it was just an “infrastructure blip,” and that there was nothing to be worried about.
Oops! Sorry! Infrastructure blip. Really easy fix but I enjoyed an offline afternoon with my girls 😇 So I only found out after some time, when I checked my phone. Monitoring, messages, calls 😇 Social media tips went through during the downtime. Sorry! 😆
— Wietse Wind (@WietseWind) June 23, 2019
XRP TipBot is probably the first and most widely accepted use-case of XRP. It leverages the transaction settling time of XRP Ledger to make tipping easy among peers on Twitter, Reddit, and other platforms, and this was the brainchild of developer Wietse Wind.
After TipBot, a lot of other cryptocurrencies have tried to mimic this idea of facilitating tipping; an example being Bitcoin’s, Tippin.Me which leveraged Lightning Network for tipping users. Although successful, it isn’t as popular as Wind’s TipBot.
The reason behind the same is that XRP Ledger allows transaction settlement in under 5 seconds, which makes tipping fast and efficient, unlike Bitcoin’s transactions which take a few minutes for transactions to be confirmed.
This is same reason why XRP is being used as a liquidity provider for cross-border payments in Ripple’s proprietary product, xRapid.
XRP community is a tightly-knit community with people who are very bullish about XRP’s success. There are equally talented developers in the community who are developing apps that help create more use-cases for XRP.
SchlaubiDev is one such developer known for developing plugins for Gmail and Microsoft Office, plugins that allow a user to send XRP over e-mails.
Ripple has identified Wind and his team’s talent and inducted them into Xpring, which finances them to help develop more community-based apps for increasing XRP use-cases.
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