JPM Coin all hat and no cattle: crypto exchange exec
All of the hullbaloo over JPMorgan’s “cryptocurrency” threatens to obscure more noteworthy accomplishments coming down the pike, a cryptocurrency exchange executive believes.
Luno cofounder and CEO Marcus Swanepoel began by saying the JPM Coin is crypto in name only, so it won’t impact the actual cryptocurrency sector.
“The announcement of JPM Coin has had little impact on the market because if you look under the hood, it’s not really a cryptocurrency. In reality, it’s a closed loop system that only JP Morgan uses, and only for their clients, as you need permission from JP Morgan to use its coin. Whereas, a genuine cryptocurrency is accessible to everyone. By running JMP coin solely on blockchain network Quorum, JP Morgan have ensured it will be used on a very small scale.”
The JPM Coin is in some ways similar to stablecoins, which are backed by a single currency or basket of currencies, Mr. Swanepoel suggested
“When those things are offered to the market in a more open and decentralized manner that gets very interesting. So I wouldn’t say the JP Morgan coin is a big deal, however whilst it’s not a proper crypto it’s reminding everyone that this tech has so many unexplored possibilities.”