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Nouriel Roubini says JP Morgan’s cryptocurrency JPM Coin is a joke; compares it to XRP




Nouriel Roubini says JP Morgan's cryptocurrency JPM Coin is a joke; compares it to XRP
Source: Unsplash

Nouriel Roubini aka Dr. Doom has always been against cryptocurrencies and blockchain, but Roubini’s tweets regarding JP Morgan’s cryptocurrency suggests that he acknowledges cryptocurrencies.

JP Morgan, an American financial services company and bank, recently launched its own cryptocurrency called “JPM Coin”, which was created to settle payments between clients. JP Morgan, as a result, became the first major bank to launch its own cryptocurrency in the US.

The cryptocurrency faced a lot of heat from the cryptocurrency eco-system as they called it centralized as it basically destroys the ethos of blockchain and the first cryptocurrency, Bitcoin, which was created to take control away from centralized authorities.

Nouriel Roubini was one among such people who disliked the idea of a bank coin. Roubini tweeted:

“In which way has the new alleged JPMorgan crypto coin anything to do with blockchain/crypto? It is private not public, permissioned not permissionless, based on trusted authorities verifying transaction not trustless, centralized not decentralized. Calling it crypto is a joke.”

The JPM Coin is similar to stablecoins in concept as it can be redeemed for $1 and as CNBC reported, clients will be issued the coins after depositing dollars at the bank; after using the tokens for a payment or security purchase on the blockchain, the bank destroys the coins and gives clients back a commensurate number of dollars.

Nouriel Roubini went on to compare the JPM coin and XRP. Roubini retweeted his aforementioned tweet with a comment:

“Ditto for XRP. It is as much of a joke as the new JPMorgan new pseudo crypto coin.”

Even though a lot of people in the crypto-community hated the idea of a bank-issued coin, some applauded it. Twitter user @Tusharjain tweeted:

“Banks were obviously never going to use XRP for settlements and enrich Ripple Inc (who owns more than half of all XRP). They would rather enrich themselves instead!
Kudos to JPM for being first. They are going to wipe the floor with Ripple.”

Miked Dudas, the founder, and CEO of The Block, commented:

“JP Morgan, the bank whose CEO Jamie Dimon has called Bitcoin a “scam” + said “I don’t really give a shit about Bitcoin” is launching its own cryptocurrency.
When @TheBlock__ inquired a month ago, JP Morgan blockchain execs denied this was in the works.”

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time writer at AMBCrypto and a part-time novice trader.

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    February 16, 2019 at 8:45 PM

    To put the JPM Coin in perspective, eventually “the proof of the pudding is in the eating”. So, before people jump to conclusions, I would very much like to see some real life comparison on true Key Performance Indicators, like, trust, transaction speed/tps/costs, degree of centralisation/control, PoW vs Consensus etc. between e.g. the “new” SWIFT GPI, JPM Coin and XRP.
    All of a sudden there isn’t a lot of noise about these things, especially from JPM themselves who made a lot of noise on Bitcoin/crypto in general for example. Almost like these KPI’s are not important anymore. Please mind that it is because of parties like JPM blockchain and crypto exists in the first place. (NB. Remember the latest financial crisis, the biggest after the second WW, and all the bailouts with YOUR tax money?) You could also ask yourself the question why SWIFT suddenly is teaming up with R3 after beating down crypto and XRP for quite some time already? (although R3 is planning to make use of XRP on their CORDA settler by the way)
    This latest move from both SWIFT and JPM is not a sign of strength, it is a clear sign of weakness and fear. Fear Of Missing Out. Fear of losing their dominant position, power, control. Their current business model is seriously at risk. They HAVE TO make moves like this or it certainly is end of story for them.

    However, beyond all the hype, speculation, FUD, FOMO, Legal battles, threats etc. it eventually comes down to the essence, the substance, the core. Are you really able to deliver/to meet what the people demand?

    This will take some time but the outcome is certain. Do you trust the “old boys network” with all their strings attached? Or do you trust a radically new technology that delivers and puts the power back where it belongs namely, in the hands of us all!

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