Ripple project may die because of new banking stablecoin
In the context of the slow banking system of the United States, many companies use cryptocurrencies for instant payments with partners. In particular, the largest financial structure JP Morgan makes corporate payments using its own digital currency JPM Coin. Signature Bank also boasts payments on blockchain: transactions of several million dollars a day are made through alternative channels thanks to MobiCoin. Ripple, a company from San Francisco, which in 2012 developed an alternative system of bank payments did not like news about digital coin from JP Morgan industry giant. Originally, XRP was offered to financial companies as a single platform for mutual settlements. But alas, the Americans treated with distrust to Ripple, and the platform itself took an honorable place in the list of the main cryptocurrencies of the world.
At the moment, analysts argue that XRP, as a project, entered a period of protracted crisis. Two banking structures made it clear that it is easier for them to develop their own coins than to use ready-made payment systems on the blockchain. In the twentieth of February 2019, Ripple CEO Brad Garlinghouse gave a series of interviews in which he explained in detail why JPM’s coin is doomed to failure. Garlinghouse explained that by creating cryptocurrency projects, banks are away from the environment of their existence and exchange rates. Therefore, financial giants will have to organize a separate market for their coins. Or, alternatively, convert tokens into fiat, exchange them, and then convert dollars into internal coins again. But analysts think differently: Ripple time has passed.
Ripple project: what’s wrong with it?
Ripple, as an alternative platform, is part of the cryptocurrency market that is experiencing hard times. All digital assets are lost in price, and exchanges are closed. Seeing the impending catastrophe, Bitcoin billionaires Winklevos brothers take all possible actions to make BTC a subject of the traditional stock market and turned into a security. But the authorities are cautious about this initiative.
According to experts, JPM Coin, unlike XRP, has more prospects, since it is a StableCoin and is tied to the dollar. It is also important that the coin is managed by a serious banking organization, not a startup. At the same time, calculations are conducted inside the structure and can not affect the economy of the country in any way. The situation with bank coins can further develop in three main scenarios. First: it’s when all financial institutions agree about use of one coin in mutual settlements. Second: there will be a lot of internal coins and a separate market for them. The third, most suitable for the market: Americans will finally create a single system of fast payments, and then the need for JPM Coin will disappear by itself.