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Ripple CEO Brad Garlinghouse talks about JPM Coin’s lack of interoperability

Namrata Shukla

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Ripple CEO Brad Garlinghouse talks about the lack of interoperability of JP Morgan [JPM] Coin
Source: Pixabay

Ripple has been commenting on JP Morgan Coin [JPM]’s lack of usefulness since it was launched. Recently, the Chief Executive Officer [CEO] of Ripple, Brad Garlinghouse, shared his opinion of the coin, while questioning its usability factor and adoption by other banks.

During an interview at the Chamber of Digital Commerce’s D.C. Blockchain Summit in Washington, Garlinghouse started by appreciating JPM Coin and said that it was “great” to have a major financial player like JP Morgan in the crypto market.

During the fireside chat, Garlinghouse said that he thought it was “great” for the crypto industry to have major financial players like JP Morgan “leaning in.” However, the CEO quipped,

“That’s the only nice thing I’m going to say about this.”

Ripple has been promoting its Distributed Ledger Technology [DLT] to financial institutions for payments, along with other products that make use of XRP. Ever since the launch of the JP Morgan cryptocurrency, the company has been doubting its validity in the real world. Garlinghouse recollected another conference he attended in the last week and recalled,

“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.”

He reasoned, saying that a bank creating its own stablecoin raises the same problems that DLT is supposed to solve.

“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.”

Garlinghouse questioned the point of tokenizing fiat currencies when it remained in the books of the single entry. He also raised an issue, querying that if the bank offered a JPM coin in replacement of a dollar, which an individual will be able to move within the JPM ledger, then why not use the dollar, instead of getting it exchanged for JPM token.

“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.”

Ripple CEO concluded by re-visiting his point that if the JPM Coin solved any problems, it would be great.

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