On Valentine’s Day, the cryptocurrency world got some love from a highly unexpected source: JPMorgan Chase. The giant retail and investment banking firm announced that it had developed a digital currency token that it fully intends to use to settle financial transactions. JPM Coin is a token that runs on Quorum, a private blockchain operated by JPMorgan and derived from Ethereum; it is a “stablecoin” in the sense that its value is pegged to the United States dollar, and it was reportedly developed for the purpose of making international money transfers faster and more affordable.
Will JPM Coin Compete with Ripple’s Features?
Individuals who follow XRP know that the Ripple Labs’ business development team has specifically focused on providing an alternative to the SWIFT international wire transfer platform. Through the use of XRP tokens, banks and individuals can instantly send money across borders without the fees and delays traditionally associated with bank-to-bank transfers, and this is almost exactly what JPMorgan Chase explained when it announced JPM Coin a few days ago.
While competition is presumably good in any financial market, JPM Coin would be in a more advantageous position than Ripple Labs to take on the SWIFT platform. It should be noted that JPM Coin is pegged to the U.S. dollar, and this fact alone would make it very interesting to people and companies making wire transfers, but there is the even stronger factor of the token being issued by JPMorgan Chase, a company that has far more financial clout than Ripple Labs.