A few days ago, JPMorgan announced that it will be launching a new stablecoin to settle payments between customers. The digital currency is going to be called JPM Coin and it is expected to be launched later this year. One of the main discussions around it was related to whether it can harm Ripple’s market in the future. In this article, we give some reasons why it may not affect Ripple.
Will JPM Coin Affect Ripple?
The JPM Coin could play an important role in the future of the cryptocurrency market. The digital asset could be attracting an important number of banks that would, in another way, work with Ripple or keep using the SWIFT network to process payments.
The first thing to mention is that the XRP digital asset is not a stablecoin. During the last year, investors have been placing their funds on this virtual currency expecting to profit in the future. The JPM Coin will be backed by US dollars. That means that its value will be fixed and it will not change. Investors in the crypto market will not be placing their funds in a stablecoin to obtain returns with it.
Secondly, Ripple has already partnered with more than 200 companies all over the world. There are financial firms and banks working with Ripple’s technology and the number of institutions working with Ripple continues to grow week after week.
Thirdly, Ripple has also launched a product called xRapid. With it, customers will have the possibility to source liquidity on-demand. Using the digital asset XRP, banks and financial institutions would be able to settle payments in just seconds. This product is already being embraced by several firms and companies around the world. JP Morgan has yet to develop its virtual currency, test it and start deploying it.
Another thing that is worth mentioning is that there are also other competitors in the market. Other banks could start to use their own virtual currencies as well. Moreover, Stellar Lumens (XLM) is also an important player in the market. Although Ripple and XRP can be affected, this may not be the end of the company.
At the time of writing this article, XRP is the third largest digital asset in the market. It is being traded around $0.3 and it has a market capitalization of $12.38 billion.
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