JP Morgan’s Global Head of E-Commerce elucidates on the difference between crypto and blockchain

Ron Karpovich, the Global Head of e-commerce at JP Morgan, said that blockchain technology could enhance existing payment channels.
In a recent interview with CNBC, Karpovich pointed out that there is a difference between trading an existing digital asset and using its core technology to enhance the payment infrastructures by executing payment settlements efficiently at a cheaper rate.
He also added that the payment system deployed by leveraging blockchain tech would not be visible to consumers who will just have to choose a preferred payment mode. Only the end result of cheaper and instant settlements would be experienced by the users, he said.
While the crypto community vouches for a payment system that is secure, fast, cost-effective, and decentralized, with no third-party interventions, Karpovich is of the opinion that ultimately, for any payment to settle, a banking establishment is important. JP Morgan’s anti-crypto rhetoric in the past and its foray into the market with its own coin is something worth noticing.
JPM Coin, which is currently reserved for institutional clients is a product of JP Morgan. The financial behemoth has historically been one of the biggest critics of Bitcoin. The company had previously published reports on the cryptocurrency market in general, with its analysts stating that Bitcoin might be effective in a dystopian future.
Jamie Dimon, the CEO of JP Morgan, previously called Bitcoin a fraud. Apologizing for the same earlier this year, he stated that he believed in the underlying technology. He said,
“I didn’t want to be the spokesman against Bitcoin. I don’t really give a sh*t, that’s the point. Blockchain is real, it’s technology, but Bitcoin is not the same as a fiat currency.”
The post JP Morgan’s Global Head of E-Commerce elucidates on the difference between crypto and blockchain appeared first on AMBCrypto.
Source: AMB Crypto

Ripple Might Lose Its Banking Partnerships Due to the JPM Coin Phenomena

JPM Coin caused an uproar in the cryptocurrency and financial market with its introduction of the JPM coin. However, the chaos was non-directed; the purpose of JPM Coin was unknown. Moreover, its contribution or competition to the cryptocurrencies was also unclear.
Nevertheless, JPM coin received harsh criticism from the crypto community including Ripple’s CEO Brad Garlinghouse. The reason cited for the same was lack of interoperability. The general perception is that JPM coin is as an isolated centralized cryptocurrency. However, it seems that there is more to it that it meets the eyes.
Beginning of a Banking/Blockchain Revolution?
JPM Coin is built on a distributed ledger based on Blockchain. While the JPM coin does not add any economic value to the system, a variety of centralized blockchains can be made to interact with each other. Hence, JPM coin might not just be an isolated incident but the beginning of a Blockchain revolution in banking.
Proposed Schematic Diagram Of JPM Coin
According to Aaron Brown from Bloomberg:
” it (JPM) is designed to interact with any “standard” blockchain. It needs to be a blockchain to play with other blockchains and I think the distributed ledger means that JPM Coin will circulate outside the JPMorgan private blockchain. Those other ledgers might be private or public, centralized or distributed (probably mostly private and centralized), but the overall system is distributed. ”
Tokenization of the Economy
Furthermore, the increased interoperability between banks might also start to include other institutions in it. Hence, the centralized or decentralized entities will get an opportunity to transact in that ‘token’ as well.
While this will help the cryptocurrency markets as a whole, it might hurt the price of Ripple’s XRP massively. Until now the XRP’s investments are majorly driven on its partnerships with banks and financial institutions. Therefore, if JPM cryptocurrency starts to provide utility and execute transactions as efficiently as XRP; XRP’s demand would decrease considerably as Ripple would start losing its partners.
 “I think JPMorgan will earn seigniorage creating JPMCoin. I think the exciting potential is circulation outside the JPMorgan private blockchain.”
The post Ripple Might Lose Its Banking Partnerships Due to the JPM Coin Phenomena appeared first on Coingape.
Source: CoinGape

JPMorgan Executives Flip Bullish on Crypto After JPM Coin Release

It’s no secret that the executives sitting at the top of JPMorgan Chase – one of the largest banks in the world – are not the biggest fans of Bitcoin and other similar cryptocurrencies.
Although the bank’s distain towards the nascent technology initially appeared to be genuine – and possibly rooted in fear – it now appears that they are, in fact, bullish on the tech – as long as they are the ones controlling it.
JPMorgan Executive: Crypto Innovators Still Have to Use Traditional Banks
Although one selling point of decentralized cryptocurrencies is that they allow individuals to side-step the traditional banking system, and therefore avoid the sheer amount of inefficiency and cost that can be associated with traditional financial systems, one JPMorgan executive is quick to point out that crypto companies still have to use traditional banks.
In a recent interview with CNBC’s Squawk Box, Ron Karpovich, the Global Head of eCommerce Solutions at JPMorgan Chase, explained that the traditional banking system is so intertwined with the world presently that there is no true way around avoiding it, further adding that payments are not the most profitable industry.
“Ultimately behind the scenes, they [crypto companies] are going to have to use a bank to move funds. There’s more partnership instead of competition in that space… When it comes to margins and capabilities, payments is never something that grows in margin, nobody wants to pay for a payment…so you need highly efficient and large players,” he explained, further affirming the imperative role that big banks play in payments.
Furthermore, while responding to a question regarding how far the ecommerce industry is from using crypto to facilitate payments, Karpovich explained that he believes blockchain – the technology that underpins cryptocurrencies – will be used to facilitate payments behind the scenes, but that it won’t have a huge impact on consumers.
“I think ultimately you’ll find that the technology behind the scenes will be blockchain, I don’t know that you’ll notice anything as a consumer in that space. I think that you’ll still continue to use the payment type that you prefer, be that a wallet, a card, or a bank account,” he noted, adding that the consumer impact will be cheaper fees and slightly quicker transactions.
What Caused JPMorgan to Flip Bullish on Crypto?
The recent news regarding the bank’s foray into the crypto industry with the introduction of their JPM Coin was quite surprising to the crypto community, as Jamie Dimon, the CEO of the bank, is notoriously anti-crypto.
One of the show’s hosts asked Karpovich about his bosses’ anti- crypto sentiment, to which he responded claiming that there is a difference between utilizing blockchain and speculating on cryptocurrencies.
“There’s a difference between trading a cryptocurrency that’s in the market that’s ubiquitous, versus using the technology to enhance your payment infrastructure,” he explained, avoiding directly confronting Dimon’s previous comments about crypto.
Although large financial institutions entering the industry is not surprising to many crypto advocates, it is symbolic of a bigger movement of financial institutions recognizing the potential benefits that digital currencies could ultimately have on the existing financial system.
Featured image from Shutterstock.
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Two ‘Major US Banks’ May Soon Issue Own Cryptos on IBM World Wire, Is Ripple Under Threat?

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Two ‘Major US Banks’ May Soon Issue Own Cryptos on IBM World Wire, Is Ripple Under Threat?
IBM announced that two major US banks may soon offer their own cryptos on the IBM World Wire amidst growing concerns that Ripple’s dominance in this global remittance space may be under threat.
Two ‘Major US Banks’ May Soon Issue Own Cryptos on IBM World Wire, Is Ripple Under Threat?

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Source: CoinSpeaker

Ripple (XRP) Squeeze, A Major Breakout Is on the Cards

Ripple prices below 34 cents, in range mode
JPM Coin not a threat, Brad Garlinghouse assures
Transactional volumes low, averaging 14 million

Brad Garlinghouse, the CEO of Ripple Inc, is confident that JPM Coin private nature is not a threat to XRP. Even so, Ripple (XRP) prices are struggling and yet to breach the 34 cents mark.
Ripple Price Analysis
Fundamentals
In a way, JPM Coin is a pioneer in that it is the first major, USD backed cryptocurrency issued by a major bank. Here’s why it is noteworthy. Aside from Jamie Dimon opinion on crypto, the bank he heads is a mover. JP Morgan and Chase have a net income of US$32.474 billion and AUM of US$2.733 trillion. However, it doesn’t stop there. The bank is a behemoth on its own and one of the oldest in the US.
Therefore, their decision to issue a stable coin redeemable 1:1 with the USD is something remarkable if not shaping. It also spells stiff competition for Ripple Inc eager on clipping market share from SWIFT, a self-serving global network created by the world’s leading banks.
Despite this, Brad Garlinghouse is unfazed, and at the recent DC Blockchain Summit, he said the problem is with its centralization. Explicitly formed for institutional transfers, Brad insists that JPM Coin fails to tackle a use case and therefore will find it hard to gain traction.
Candlestick Arrangements

At the time of press, XRP is stable and trading within a tight trade range. Even though we are bullish on the coin, expecting a rebound from 30 cents, it is the lack of conviction from the optimistic side of the equation that is stalling our prospects.
To reiterate our previous stands, Ripple (XRP) is technically bullish and the longer this BB squeeze becomes, we expect a break and close above 34 cents. The level marks the 61.8 percent Fibonacci retracement off Dec 2018 high low.
Before then, the failure of bulls to build momentum and rally above this mark means there are high odds of a break out that will validate our trade plans.
Technical Indicators
Compared to trade volumes of Feb 24, Ripple (XRP) transaction levels are low, averaging 14 million. Since our anchor bar is Feb 24—61 million, it is until there is an increase of activity, driving prices above 34 cents or below 30 cents complete with high trading volumes—preferably above 61 million, that we shall add our longs or liquidate our position.
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Japanese Banking Giant Mizuho’s J-Coin Should Not Be Mistaken for a Cryptocurrency

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Japanese Banking Giant Mizuho’s J-Coin Should Not Be Mistaken for a Cryptocurrency

Mizuho’s J-Coin will be a normal digital token, not based on the blockchain technology. The J-Coin is an attempt by Mizuho to push electronic payments in the country.

Japanese Banking Giant Mizuho’s J-Coin Should Not Be Mistaken for a Cryptocurrency

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Source: CoinSpeaker

Ripple’s Brad Garlinghouse Mocks at JPM Coin Quoting ‘Other Banks Won’t Use it’

JP Morgan’s entry in crypto space with the launch its own stablecoin, JPM Coin was quite surprising and led to the increasing debate. Since the announcement rolled, rumors called it out as a direct threat to Ripple’s native token, XRP. However, in the opinion of Brad Garlinghouse, CEO of Ripple – so-called, JPM Coin is missing the point.
However, during a discussion with Nasdaq’s reporter Jill Malandrino at the Chamber of Digital Commerce’s D.C. Blockchain summit in Washington, Brad Garlinghouse answered to a quick question on JP Morgan’s JPM Coin. Although he immediately admired JP Morgan’s initiative to lean in – but immediately mocked by stating ‘that’s the only nice thing. In his words;
It’s great to have major financial players like JP Morgan to lean. That’s the only nice thing I’m going to say about this, Brad Laughed.

DC Blockchain Summit March 6th 2019Brad Garlinghouse talking about JPM Coin#xrp #ripple #xrpcommunity #crypto #blockchain #xrpthestandard #0doubt #xrparmy pic.twitter.com/J2H1FZh2wu
— ༜༝🅂🅃🅄🄰🅁🅃🅇🅁🄿💧⚡ (@stuart_xrp) March 6, 2019

Soon after this, he reminds himself of one occasion where he got to ask about the JMP Coin and its use cases – he continued stating;
“OK, so I got asked this last week. I was speaking at a Morgan Stanley conference, and someone asked me…there was this headline about JPM Coin. This guy was from Morgan Stanley who was interviewing me. So, I asked him ‘Is Morgan Stanley going to use the JPM Coin?’. He said ‘probably not’. Or is Citi going to use the JPM Coin? Is BBVA? Is PNC? And the answer is no. And so does that we’re going to have all these different coins, and does that mean we’re back to where we are with lack of interoperability? I don’t get it.”
As said earlier, Brad Garlinghouse doesn’t necessarily think JP Morgan as the threat to Ripple or its JPM Coin a rival to XRP either- However, he thinks the utility of JP Morgan’s coin is only for books. In contrast, Ripple, a San Francisco based Blockchain firm is reaching an enjoying a wider-scope with blockchain – having worldwide partners that are already utilizing its underlying products.
He further elaborates his stance on JMP Coin;
If you give them a dollar for deposits, they’ll give you a JPM Coin that you can then move within the JPM ledger. Wait a minute, just use the dollar! 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.
The post Ripple’s Brad Garlinghouse Mocks at JPM Coin Quoting ‘Other Banks Won’t Use it’ appeared first on Coingape.
Source: CoinGape

Ripple CEO: I Don’t Know What Problems Does JPMorgan Coin Solve

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Ripple CEO: I Don’t Know What Problems Does JPMorgan Coin Solve

Brad Garlinghouse, the CEO of cross-border payment giant Ripple, has weighed in on JP Morgan’s USD-pegged stablecoin, again.

Ripple CEO: I Don’t Know What Problems Does JPMorgan Coin Solve

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Source: CoinSpeaker

Wall Street Refuses to Bank Crypto Businesses, and Here’s Why

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Wall Street Refuses to Bank Crypto Businesses, and Here’s Why

It seems these days everybody is writing about JP Morgan, whether attacking Ripple or blacklistling other crypto companies.

Wall Street Refuses to Bank Crypto Businesses, and Here’s Why

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Source: CoinSpeaker

XRP Fans Strike Back After Forbes Journalist Calls Ripple a Scam

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XRP Fans Strike Back After Forbes Journalist Calls Ripple a Scam

Ripple (XRP) has been at the center stage of the cryptocurrency industry with many great developments in its favor. However, Forbes’s Jason Bloomberg published an article saying Ripple is a scam.

XRP Fans Strike Back After Forbes Journalist Calls Ripple a Scam

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Source: CoinSpeaker

Binance: JP Morgan’s Crypto Unlikely To Pose Immediate Threat To SWIFT Or XRP

Mere weeks ago, JP Morgan Chase, one of the world’s largest financial institutions, shocked the crypto space. For those who missed the memo, the Wall Street mainstay unveiled plans to launch its own digital asset, based on the Ethereum-esque Quorum private ledger.
Due to its premise, JPM Coin, as the cryptocurrency has been dubbed, was deemed to be a competitor to the offerings that SWIFT and Ripple (and XRP by extension) continually tout. But, Binance has overtly claimed that this might not be the case.
But first, here’s a ditty about JP Morgan’s first notable crypto-centric product.
Meet JPM Coin
Per comments from Umar Farooq, the Wall Street bank’s blockchain division lead, the newfangled asset will be backed by physical U.S. dollars and will act much like stablecoins, but in a rather centralized manner.
Eventually, the asset could extend its tentacles to a number of ledgers (both private and public) with interoperability protocols allowing for JPM Coin to be utilized in an array of different ecosystems. Farooq remarked that his team intends the venture to eventually be a multi-purpose asset for the bank’s operations, whereas “anything, where you have a distributed ledger, [that] involves corporations and institutions” will use the digital asset.

For now, however, the JP Morgan executive made it clear that the novel venture is primarily intended to bolster the company’s internal international corporate transactions.
Related Reading: JP Morgan Launches Pale Imitation of the “Fraud” that is Bitcoin
Farooq added that a “tiny fraction” of his employer’s daily corporate transactions, which purportedly amount to a nominal value of $6 trillion U.S., would be made through JPM Coin. Yet, he didn’t explain what the fraction would equate to. But as it stands, it is unlikely that the bank is poised to transact billions on their nascent centralized blockchain.
Funny enough, JP Morgan’s in-house Bitcoin cynic and CEO, Jamie Dimon, noted that his firm’s cryptocurrency could eventually see use in retail outlets.
Bank Crypto Not A Threat To XRP?
While this project may have an innocuous premise, many crypto commentators quickly took to Twitter to remark that Ripple’s services and the XRP Ledger’s function could come under fire.
Tom Shaughnessy, the principal analyst at Delphi Digital, remarked that JPM Coin is a “huge slap in the face for Ripple,” explaining that the fintech group’s cross-border payments and remittance efforts may go kaput.
Yet, a report from world-renowned startup Binance claims that it isn’t cut and dried. In an in-depth study on the so-called “corporatecoin” and what it could mean for cryptocurrencies at large, the Malta-registered company’s research division noted that while JPM Coin has a decent value proposition and network, the asset is currently restricted for internal clients. Binance also added that it is “highly unlikely” that clients of competing institutions, like Citi, would actively use JPM Coin.

Will JPM coin have potential implications for the crypto industry? @binanceresearch discloses their findings with an in-depth report.https://t.co/6X9uuX6R45 pic.twitter.com/tofBhhMF0h
— Binance (@binance) March 1, 2019

On the other hand, Ripple’s technologies built on top of the XRP Ledger could theoretically be adopted by any institution, as the fintech startup is mostly without conflicts of interest and the ever-competitive attitude of Wall Street.
Binance Research even notes that Quorum, which can only process “dozens to hundreds” of transactions per second, is comparatively inefficient when put side-by-side with XRP and purportedly event SWIFT. After further mentionings of the raison d’etres of JP Morgan and Ripple, Binance concluded:
“Overall, the two projects appear to have different focuses and potential applications in the short term. While there is currently no direct overlap on the functionality of the two initiatives, future developments on the reach of JPM Coin outside of its existing closed network will determine to what degree Ripple and JPM Coin will compete.”
Featured Image from Shutterstock
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JPM Coin will not trouble XRP and stablecoin market in near future: Binance Research

JPM Coin, the dollar-backed cryptocurrency introduced a few weeks ago by the financial giant, JP Morgan, will only have a “minimal impact,” suggests Binance Research. The statement comes after many in the cryptocurrency community questioned the possible impact of the new coin on the stablecoin and XRP market.
In a detailed analysis done by the research wing of the cryptocurrency exchange, Binance, the JPM Coin was compared to the fiat currency-backed stablecoin market and the Ripple centralized cryptocurrency, XRP.
The ‘BankCoin,’ as many are calling it, is floated on a private blockchain. JP Morgan has been developing use cases for its Ethereum like the private and permissioned blockchain technology, named Quorum, developed in partnership with EthLab, an Ethereum startup.
Stablecoins played an integral part in addressing the cryptocurrency market’s volatility problem since Tether, the top-stablecoin, came to be in 2014. Due to the varied nature of stablecoins’ emergence, the research piece described JPM Coin as,
“JPM Coin represents the first prototype of a stablecoin created by a traditional financial institution.”
The analysis highlighted that JPM Coin seemed to be the “precursor of a third generation of stablecoins,” due to it being operated on a private blockchain within a financial institution for settlement purposes. Binance Research further suggested that the entire business model of the stablecoin market will be shifted from a hedging tool to one that addresses business problems. In JP Morgan’s case, the JPM coin would assist in client transactions and settlement functions.
JPM Coin and other coins that will be issued by large financial banks will primarily cater to institutional investors and hence, Binance’s analysis suggested that JPM coin will have “minimal impact” on the stablecoins on a public network.
The research stated,
“Large banks and financial institutions such as J.P. Morgan have a distinct set of advantages in issuing fiat-collateralized stablecoins, but these offerings will not displace liquid, publicly traded stablecoins in the near-term given their closed ecosystems built on private blockchains.”
The analysis further suggested that XRP was the “mediator currency” between fiat, cryptocurrencies, and other trust products like commodities, miles etc. XRP could interact with networks on a closed blockchain like the JPM Coin to bridge the gap between the open and the closed.
The report concluded,
“While there is currently no direct overlap on the functionality of the two initiatives, future developments on the reach of JPM Coin outside of its existing closed network will determine to what degree Ripple and JPM Coin will compete.”
However, JPM coin’s application may not be solely with JP Morgan’s clientele, with their CEO, Jamie Dimon, suggesting that the JPM Coin could be used in retail payments as well.
The post JPM Coin will not trouble XRP and stablecoin market in near future: Binance Research appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC] proponent attacks JPM Coin; says “it should be prevented”

JP Morgan, the largest bank in American, had launched its own cryptocurrency JPM Coin a few weeks back. The announcement was met with a lot of criticism and trepidation after reports showed that JP Morgan’s CEO, Jamie Dimon, was a big critic of Bitcoin [BTC] and other cryptocurrencies.
Recently, Anthony Pompliano, on his Off the Chain podcast, gave his views on the upcoming cryptocurrency and its proclaimed uses. The cryptocurrency is based on a private blockchain and backed one-to-one by the US dollar. Pompliano stated:
“When Mr. Dimon was recently asked about the future prospects of JPM Coin, he said that it could one day be used by retail consumers for everyday commerce. This is a fairly significant change from the original talking points in the launch announcement.”
The Bitcoin proponent and co-founder of Morgan Creek Digital Capital was of the opinion that JP Morgan has a more audacious plan in the pipeline. In his words:
“…JP Morgan is going to try something so audacious that we should be offended that they would even try it. Let’s call it the Printing Press Playbook.”
He stated that JP Morgan’s coin will be successful and the bank would start offering JPM Coin to institutional clients and peers for transactions. Pompliano then claimed that as the institutions begin adopting JPM Coin, the bank will start pushing customers and retailers to use the digital currency for everyday transactions. He continued:
“Once JPM Coin is widely adopted, JP Morgan comes up with a clever reason to temporarily diverge from having every JPM Coin backed by a US dollar (just as the Nixon administration said the US dollar would temporarily break from the gold standard in 1971).”
In his blog post, Anthony Pompliano further added that the bank will then get full control over a digital currency that has “little transparency and a high degree of adoption”, which will then see the bank creating more and more JPM Coins out of thin air.
The co-founder was against the idea of JPM Coin’s implementation and concluded:
“We should do everything in our power to prevent this from happening. The US government is already questioned quite aggressively about monetary policy decisions, so imagine if we had to trust a Wall Street bank that was previously charged with a felony.”
The post Bitcoin [BTC] proponent attacks JPM Coin; says “it should be prevented” appeared first on AMBCrypto.
Source: AMB Crypto

JPMorgan Tests Ethereum Privacy Tech ‘AZTEC’ with Zero-Knowledge Proofs

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JPMorgan Tests Ethereum Privacy Tech ‘AZTEC’ with Zero-Knowledge Proofs

Having launched its own digital asset, JPMorgan Chase is now exploring the capacities of a new Ethereum privacy tech AZTEC based on zero-knowledge proofs.

JPMorgan Tests Ethereum Privacy Tech ‘AZTEC’ with Zero-Knowledge Proofs

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Source: CoinSpeaker

Japanese Banking Giant Mizuho Unveils Its Own Crypto on March 1

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Japanese Banking Giant Mizuho Unveils Its Own Crypto on March 1

Mizuho Bank will partner with over 60 financial institutions to use its J-Coin Pay platform while serving over 59 million customers.

Japanese Banking Giant Mizuho Unveils Its Own Crypto on March 1

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Source: CoinSpeaker