Recently, JP Morgan surprised the crypto market by announcing its own stable coin, the JP Morgan Coin. After the announcement itself, there were rumors that it is going to affect SWIFT or XRP immediately. However, recent analysis reports that it might affect but not immediately.
Abilities of JP Morgan Stable Coin
JP Morgan coin could extend its ability for various ledgers. It could be used in different ecosystems. The executives of JPM noted that this multi-purpose coin could be used at every financial place which involves a distributed network. This could be an organizational as well as institutional level. However, JPM has already stated that at the initial stage, this coin would be used in some selected members of JPM. Only internal international corporate transactions would be made at this initial stage through the JP Morgan Coin. One executive also said that there are possibilities of JP Morgan coin to be used in retailers.
Not an immediate threat to SWIFT or XRP
Immediately after the release of the launch of JP Morgan coin, many experts started the discussion of its adverse effect on XRP. Even one executive of Delphi Digital stated that this was a huge slap for XRP and it would make life difficult for XRP and SWIFT. But a recent report depicts that it is not an immediate threat to XRP.
Firstly, JP Morgan coin is presently restricted to some internal clients. It is unlikely that other competitive organizations would use JP Morgan coin. On the other hand, the technology of Ripple has been built on superior XRP ledger and this makes it as readily acceptable by any organization. The second factor is the relative speeds of both the technologies. JP Morgan coin is based on Quorum which is capable to perform around dozens to hundreds of transactions in one second. This is relatively very low as compared to XRP. XRP in terms of scalability is more superior and efficient than Quorum.
So, in conclusion, these two projects even though appear to work on the same domain, have different potential and focus. There is no presently overlapping of both JP Morgan coin and Ripple. It might clash in the future but for now, both are independent of each other in term of functionalities.