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'I Don't Understand!': Watch Ripple's CEO Rant about JPMorgan's Crypto (

‘I Don’t Understand!’: Watch Ripple’s CEO Rant Against JPMorgan’s Cryptocurrency

Ripple CEO Brad Garlinghouse says he doesn't understand the hype about JPMorgan's cryptocurrency project. | Source: Steve Jennings/Getty Images for TechCrunch‘I Don’t Understand!’: Watch Ripple’s CEO Rant Against JPMorgan’s Cryptocurrency
In a Brad Garlinghouse vs. Jamie Dimon crypto showdown, the Ripple chief is not the least bit intimidated by his Wall Street rival.


Garlinghouse was featured as the keynote speaker at DC Blockchain Summit 2019, where he gave a fireside chat with Nasdaq’s Jill Malandrino.The elephant in the room, metaphorically speaking, was the recent news of Wall Street bank JPMorgan issuing the so-called “cryptocurrency JPM Coin for its institutional clients.

Garlinghouse, who has been known to sport red socks with his suit, didn’t back down from the line of questioning, even sounding like a team player at times for the industry:

“I think it’s great for the blockchain and crypto industry to have players like JPM leaning in. Thumbs up. That’s great. That’s the only nice thing I’m going to say about this.”



According to Garlinghouse, it was only a matter of time for banks to enter the crypto fray. Nonetheless, for cryptocurrency and the blockchain industry to achieve mainstream adoption, products such as decentralized apps and coins must solve some type of problem for users.

Garlinghouse went down that trail, exploring the limited use cases of JPM Coin.

For instance, JPM Coin resembles a stablecoin, given its 1:1 backing by the U.S. dollar. Institutional customers, however, must give the bank a dollar for every JPM Coin they transact in, after which time the cryptocurrency can only be moved within the confines of the centralized JPMorgan ledger.

“Wait a minute, just use the dollar”, Garlinghouse quipped, adding: “I don’t understand what problem that solves.”

TWoCdC1L_bigger.jpgBrad Garlinghouse@bgarlinghouse

As predicted, banks are changing their tune on crypto. But this JPM project misses the point – introducing a closed network today is like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer …

FORTUNE@FortuneMagazineJ.P. Morgan Chase becomes first U.S. bank with a cryptocurrency 


As a blockchain-powered cross-border payments startup, Ripple uses XRP in its flagship products for banks to settle payments with one another in a faster, cheaper way.


For instance, problems with the SWIFT network reportedly attracted one of Ripple’s most recent customers, Euro Exim Bank, to use XRP via xRapid for payments. Additionally, Brazil-based payments startup BeeTech Global is helping business owners in the Latin American region to achieve significant cost savings.

BeeTech has traded in its SWIFT network fees for remittances for Ripple’s blockchain technology, with fees falling from “$20 to $2 per transaction in the process.”
JPM Coin is on the fringes of what Ripple does but stops short of displaying even a hint of decentralization, Ripple’s own argument surrounding decentralization notwithstanding.

Garlinghouse explained how he previously questioned a Morgan Stanley representative about whether that firm would be using JPMorgan’s crypto token, to which the response was “probably not.

” He then went on to question whether Citi, Bank of America, or PNC would have any interest in JPM Coin, concluding: “The answer’s no.”He lamented that if this means that “we’re all going to have these different coins,” the industry is back to square one with a lack of interoperability.

“I don’t get it,” he complained.

Here’s where he is willing to take one for the team, saying that even if the only problem that JPM Coin solves is “JPM being associated as they’re leaning into crypto, yay.”
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    Francisco Gimeno - BC Analyst JPM Coin which is not a coin, but an internal token, on a DLT or blockchain platform. It is good when you think banks are coming into new technologies. But definitively is not a coin. They will save a lot of money for themselves and their clients. XRP, even with no mass financial adoption yet, continues to be the best experiment on banking blockchain based platform, and banks feel threatened by it. The debate between centralisation, decentralisation and scalability problems is there in the middle.
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