In the latest segment of Let’s Talk Bitcoin, Bitcoin proponent Andreas Antonopoulos openly criticized the functionality and idea of JPM Coin.
JP Morgan recently became the first US bank in history to create and test a virtual coin which represents a fiat currency. The JPM coin utilizes blockchain technology to enable instantaneous transfer of payments between clients and institutional accounts.
Andreas indicated that the JP Morgan coin was trademarked to work under a blockchain, which did not resemble an actual blockchain’s functionality. He termed the blockchain as an “SQL database”. He commented that it was a means to implement a sturdy database using over-engineered technology.
“That’s not a blockchain, that’s a sequence of poor engineering decisions!”
He termed stablecoins as “ridiculous” and mentioned the impending Facebook Coin.
“We’re going to see these types of corporate coins emerge, and they’re going to use words like “blockchain”, but effectively what these are, is centralized, custodial counterparty risk-laden, slowly inflating into shit value, pegged to the unstable debt-ridden U.S. dollar, and backed by the full faith in credit and the biggest crooks in history who run Wall Street.”
Andreas added the impending Facebook Coin to the list and explained that the use of terms like “blockchain” was wrong as they effectively were centralized, custodial counterplay risk-laden, slow inflation into the poor return of value, and pegged to the unstable debt-ridden US dollar.
He stated that such stablecoins were a waste of time. It would not be competing with any cryptocurrency, but it would compete with the likes of Paypal and Venmo, he added.
Moreover, Andreas pointed out that JPM’s coin would not compete well once Facebook launches its token, associating it to Facebook’s extreme social media reach.
Andreas Antonopoulos stated,
“I am not worried at all about crypto because crypto serves an entirely different purpose. It serves the purpose of independent, decentralized, censorship-resistant, borderless, world currency that is not controlled by a single company. They cannot compete.”
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