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Alert: JP Morgan Coin: A threat to Bitcoin and XRP?

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The JP Morgan Coin is a centralized permissioned censorable blockchain based liquidity tool. People are saying that it should not be considered a cryptocurrency.

Jp Morgan, the bank run by Jamie Dimon is launching its own cryptocurrency. JP Morgan has $2.6 trillion in assets, $100 billion annual revenue, it moves more than $5 trillion in wholesale payments every single day and a quarter million employees. It is used by the investment banking crowd, asset management crowd, private banking, private wealth management, and the treasury & security services division. This tells us exactly for whom the JP Morgan Coin is designed for. These are the organizations that are going to be using it. The JPM Coin is a centralized permissioned censorable blockchain based liquidity tool. Many people are even saying that it should not be considered to be a cryptocurrency and it is just a bank coin.

 

The JP Morgan Coin:

The JP Morgan Coin is designed to be a stablecoin. They will be starting off with the USD and will be expanding to other key currencies over time. So it will be a global currency within their permission network. It will be providing real-time gross settlements rather than waiting for days for the payments to get cleared. The network participants can transfer tokenized fiat instantly, constantly and with full finality 24X7 which is a major improvement to how the things work currently. The previous model apart from bringing slow was also more prone to fraud and exposed to the old central bank failure and required multiple intermediaries across the interbank network.

The main use cases for the JP Morgan Coin will be international payments for sizeable corporate clients circumventing SWIFT and circumventing XRP. JP Morgan Coin may also be used for securities transactions. JP Morgan has previously tested a debt issuance on the blockchain and the token will allow institutional investors to buy debt issuance. Corporations could also use the JP Morgan treasury in order to take the place of their dollar holdings in their subsidiaries all over the world which will open more ways for the big corporate clients in order to move money back and forth.

The JP Morgan Coin will be on the quorum blockchain which is a permissioned version of Ethereum which JP Morgan has been using for some time. The quorum blockchain has already seen institutional use cases. Financial institutions can trust that only authorized parties can join their private ethereum network and that the transactions will be confidential. So the JP Morgan Coin is probably for a very small group of elites.

 

The History of JP Morgan:

There are dozens of fines that JP Morgan pays yearly all around the world for doing basically the same kind of things.

  • JP Morgan was fined $65 million for trying to vague the benchmark rate.
  • They were fined $1.6 million for failing to meet anti-money laundering and counter-terrorist financing laws in Hong Kong.
  • Citigroup and JP Morgan both had to pay a combined total of $182.5 million after being accused of violating anti-trust laws. Citigroup and JP Morgan allegedly the European Interbank offered rate.
  • JP Mogan was $135 million for improper handling of American Depositary Receipts.

In most of these cases, they are not actually found guilty of anything and they just settle. They don’t end up breaking any laws cause they just pay the huge amount of fine they are asked to pay.

After the announcement of the JP Morgan Coin, JP Morgan stocks have gone up because of JP Morgan’s clients, this is a welcome sign of innovation.

 

JP Morgan Coin vs XRP:

It seems that some banks want their own coin and not XRP which is the supposed to be the banker’s coin. They really don’t want XRP for one reason or the other. Although banks would not want to use the JP Morgan Coin as such they might just have their own coins in future such as Bank of America Coin or Bank of China Coin etc. But we have an interesting situation when it comes down to exchanging value between these banks because XRP is essentially a public ledger vs the JP Morgan Coin which is private. XRP has a permissionless ledger vs JP Morgan Coin has a permission ledger. JP Morgan controls the JP Morgan Coin but they do not control the XRP ledger and remember that the banks like to have control and maybe the other banks are also going to think like JP Morgan but there is still a lot of hope for XRP. JP Morgan Coin may not see very much interoperability between banks, therefore, they might need some kind of bridge and that bridge could end up being XRP.

 

Implications for Bitcoin:

There are not many implications for bitcoin at all. Most of the bitcoin enthusiasts have zero interest in things like the JP Morgan Coin. Bitcoin has amazing and unique value propositions and this is not a threat in any way to bitcoin. JP Morgan cannot control bitcoin it is really hard to manipulate the price of bitcoin whereas in case of JP Morgan Coin, they have direct control over it. The current rumors say that JP Morgan is going to use Bakkt for their clients who want to purchase, invest and hold bitcoin. So the JP Morgan Coin doesn’t have threat on bitcoin. Bitcoin is always superior in every way.

 

What are your thoughts on the JP Morgan Coin? Tell us in the comments section below.

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Explained: How Ripple Works with Banks

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The Ripple network, RippleNet, provides companies and financial institutions with a range of services to support cross - border payments.

Ripple is a payment processing technology that integrates directly with banks and other affiliated institutions, with faster processing times and lower costs than PayPal. As such, most Ripple processing power comes from institutional gateway users who use Ripple to process payments.

Unlike most blockchain technologies, which are secured by a decentralized miners ‘network, Ripple is protected by a network of server validation with an internal ledger that guarantees transactions based on consensus.
The Ripple is mainly a payment processor and currency exchange, and the XRP is a currency, but secondary to the Ripple’s mission.

In 2014, several banks and payment processors signed up to use Ripple in a test capacity after which the adoption has been on a continuous rise.

 

RippleNet:

The Ripple network, RippleNet, provides companies and financial institutions with a range of services to support cross – border payments. Ripple also boasts versatility, the ability to help large financial institutions and its fast transaction time. Bitcoin is entirely decentralized, as it has been done to allow financial transactions without the need for external companies such as a bank. By creating its digital token to assist in the transfer of assets, Ripple is committed to supporting existing financial systems and improving their global transaction capabilities.

Many people wonder what makes the wave different from a company like PayPal or Stripe when it comes to processing payments. While PayPal and Stripe are directly applicable to consumer solutions, Ripple works more as an infrastructure for banks than as a stand-alone solution.

Ripple is a private company whose goal is to create and enable a global network of financial institutions and banks.
Essentially, Ripple is taking a stand against what they call the “walled gardens” of financial networks made up of banks, credit cards and other institutions like PayPal. While Ripple focuses on helping large banking institutions, the XRP is in tune with the little boy in an attempt to bring banking the unbanked. The success of Ripple ultimately depends on the number of partners on the RippleNet ( which has been steadily increasing over the last year ), the number of people using the Ripple product and the effectiveness of XRP.

 

Ripple for banks, not against banks

Unlike Bitcoin, which aims to eliminate banks as intermediaries, banks are the biggest users of Ripple. Ripple is used by banks to make international payments faster, cheaper and more transparent.

Instead of competing against the current banking Goliaths in the sector, Ripple’s plan is to partner with the world’s leading financial institutions to offer a blockchain solution. According to Ripple, a member of the global network, financial institutions can process customer payments worldwide immediately, safely and cost-effectively.

Instead of converting US Dollars into other currencies, taking into account changes in exchange rate margins, processing fees and slow transaction times, Bank A can transfer 5 million dollars of XRP to Bank B’s Ripple portfolio, which can then be converted into local currency.

Designed for businesses, payment providers and banks, Ripple is a payment interface designed to facilitate the use of xcurrent and xrapid. Ripple offers a distributed payment network for fast and affordable cross – border transactions and also relies on its own home currency, XRP.

If more banks join the network, this may lead to increased demand for XRP and encourage other banks to join the platform. Ripple is a major player in the cryptocurrency world, thanks to its strong financial support and strong financial support.

 

Alternative to SWIFT

The transducer for cross – border payments for banks, xcurrent, provides an alternative to SWIFT payments between banks and payers in different countries. Ripple describes xcurrent as a global system of real-time gross settlement (RTG) – the same label that the world’s central banks use to describe their own settlement systems. The ripple software then controls the funds in the relevant banks and updates the accounting books of each bank to carry out the payment, the company says that the settlement process is completed in seconds.

Street banks are usually the worst for this, but even services such as PayPal are very expensive – it costs about 2. 9 % to make an international payment with PayPal. ‘Ripple is for banks what the Internet is for the world, and they call the concept “Internet of Value “.’

The ripple XRP network is used and tested by financial institutions and banks to distribute and settle international payments more efficiently. As you can see, the XRP coin is progressing enormously with strategic partnerships and is accepted by a wide range of organizations.

The primary objective of ripple is to create a global billing network for more efficient transactions between financial institutions around the world. Xrp is the name of the digital currency that makes transactions on the Ripple network easy. XRP is a stand-alone digital asset that facilitates transactions on the Ripple network, acting as a bridge between several fiat coins and as a source of liquidity.

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XRP Adoption: SBI CEO says banks should use XRP by 2025

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XRP token has uplifting news as SBI which is the sponsor of Ripple has planned to have a few banks in Japan and utilize the token by the 2025 Osaka Expo.

Ripple‘s XRP token currently bears further uplifting news as SBI which is a Ripple enthusiast has planned to have a few banks in Japan and utilize the token by the 2025 Osaka Expo.

The President of SBI Holdings and also the Representative Director of Yoshitaka Kitao said recently that the SBI VC Trade will be going live in the of March, which implies that the confirmed individuals will almost certainly buy the XRP token, among different tokens, with the Japanese Yen (JPY).

As soon as the order books will go live then the Japanese market will be having some extra liquidity that will take into account substantial volumes of cross-outskirt exchanges by the gathering of banks. The VCTrade platform has been foreseen for quite a while.

Nonetheless, the most intriguing goody of data from the declaration is that the SBI will likely have Japanese banks to utilize the XRP token by 2025, in time for the 2025 Osaka Expo. SBI has also made a consortium of a few banks, which will no uncertainty encourage this driven offer to have such a large number of banks to use XRP.

The SBI President referenced that the organization was dealing with an “S Coin Platform” that would also help in the issuing of digital currency, which he plans to convey as a platform for payments to the Osaka Expo in 2025.

 

Yoshitaka Kitao on Bitcoin and XRP

Kitao has further claimed that the Bitcoin has no fundamental value about which an opinion is shared by the Warren Buffett which states that the XRP is the number one crypto asset.

Kitao is bullish on XRP and has in the past owned a few certain expressions on the development of Ripple and it’s cost.

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Twitter Poll: People Prefer Banks Rather Than Crypto Exchanges

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A recent Twitter poll was started by Ran Neuner resulted in favor of the banks as most of the people seem to prefer banks over crypto exchanges.

A recent Twitter poll was started by Ran Neuner who is also the host of CNBC Crypto Trader Show which resulted in favor of the banks as most of the people seem to prefer banks over crypto exchanges as means of saving their money rather than that of Crypto Exchange. Cryptocurrency exchanges may still have a long way to go but not for now.

The most awaited result of this poll was that  68% of 9,734 voters still prefer to put their money in traditional banks rather than putting it on crypto exchanges. It is not like that people don’t want Crypto exchanges, 32% preferred cryptocurrency exchanges. The result of this poll could be predicted by anyone who is following the episode of the cryptocurrency industry from last year.

There are many crypto exchanges which were hacked and have caused the loss of millions of dollars of the users and in many cases, there is no way of getting those funds back. One of the recent news of these hacks is the Cryptopia hack which is in New Zealand. This hack has led to the loss of about $16 million worth of ERC20 tokens alone. After this horrible incident, users at this moment are not sure if they will ever get their funds back.

Recently a Canadian cryptocurrency exchange QuadrigaCx is not letting the users access their funds because the CEO passed away with the private key which is known only to him. As a matter of fact, the case is still engaged in long and careful consideration to decide if it was really the death of the CEO or an exit scam that has locked away $190 million in crypto assets.

These problems continue in increasing the doubt regarding the cryptocurrency industry as a whole and keeps the world away from it. The primary advantage of the cryptocurrency should be the safety of users’ funds and if that cannot be guaranteed then people would instead stick to the system about which they are more familiar with, at least no traditional bank has been hacked and funds are lost.

Honestly, there isn’t much difference between the two. It is because most of the exchanges are centralized, but even worse is the fact that hackers can shut down an exchange like Mt Gox.

This should definitely be a challenge for the industry to pull up the socks and make sure that these exchanges are secure and the information of the users can be confident. Until or unless this goal is achieved, the industry may continue to sneak as far as mainstream adoption is concerned.

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