- Bullish vs Bearish - 85%85%
- Market Impact - 20%20%
With the recent announcement of JP Morgan releasing its own blockchain based coin called JPMCoin, there has been a lot of debate as to the implications that this news might have. Despite the anti Bitcoin rhetoric by its chief, Jamie Dimon, JPMCoin will be used to settle cross border payments with clients. It will not be publicly accessible or transferable and will only be used for the company’s internal purposes. Now, who are the winners and losers of this development?
Bitcoin: Barely a year ago, Jamie Dimon was bashing Bitcoin. Now the company he runs created a “cryptocurrency” based on the very technology that Bitcoin uses – blockchain. As the old rhetoric goes, “If you can’t beat them, join them!”. This rings true in this case and converting one of the most renown skeptics into believer of the underlying technology clearly makes Bitcoin a winner in this case.
Blockchain Technology: If you need more confirmation that blockchain technology is going to disrupt a lot of industries, a major financial institution developing and creating its own iteration is a testament to that.
JP Morgan Clients: Although not many specifics are now as to exactly how this technology will improve the internal workings of cross border settlements and payments, it can not be any slower than the current banking system that takes at least a few days to settle payments.
Jamie Dimon: Jamie what happened? He has been on record relentlessly bashing Bitcoin and blockchain over the last few years yet went ahead and implemented a JP Morgan version of crypto currency for the company’s own use. This sort of inconsistent and in a way deceitful rhetoric is the reason Bitcoin has exploded in popularity and has been touted as a much better alternative to banks and bankers.
Ripple (XRP): One of Ripple’s main selling features is the use for financial settlements among institutions. Now that JP Morgan went ahead and created theirs to do just that, others are very likely to follow which would wipe out a portion of Ripple’s customer base. This should be alarming to any Ripple investors and users.