Bře 10

Ripple CEO Skeptical of JP Morgan’s New Cryptocurrency

Ripple CEO Brad Garlinghouse questioned the purpose and the overall utility of the recently announced cryptocurrency JPMCoin. He also outlined the positives aspects of major financial players stepping in the industry. 

Garlinghouse Questions Purpose of JPMCoin

Brad Garlinghouse, CEO at Ripple — the company behind the third largest cryptocurrency by market cap XRP — expressed his thoughts on the matter of JP Morgan Chase’s recently announced cryptocurrency.

He spoke at the DC Blockchain Summit on March 6. The executive said that he thinks it’s “great” that major financial institutions such as JP Morgan Chase stepping into the cryptocurrency industry. His praises, however, ended quickly. He stated:

That’s the only nice thing I’m going to say about this.

True to his words, Garlinghouse referred to another conference that he had been speaking at where he was interviewed by someone from Morgan Stanley.

This guy from Morgan Stanley was interviewing me, I said ‘So, is Morgan Stanley going to use the JPM Coin?’ And he said ‘probably not.’ So, well is Citi going to use the JPM Coin? Is BBVA? Is PNC? And the answer is no.

Criticizing the interoperability of JPM’s new cryptocurrency, or the lack thereof, he asked if “we’re going to have all these different coins? Are we back to where we are with lack of interoperability? I don’t get it.”

The CEO also expressed his concerns about the lack of merit behind the bank’s cryptocurrency and the fact that it doesn’t solve any real issues.

If you give them a dollar for deposits, they’ll give you a JPM Coin that you can then move within the JPM ledger. Wait a minute, just use the dollar! […] I don’t understand. If you’re just moving within the JPM ledger, and it has to be dollar-to-dollar, one-to-one backing, I don’t understand what problem that solves.

Other Industry Participants Also Skeptical

The CEO of Ripple is not the first one to dismiss the purpose of JPM’s cryptocurrency.

Bitcoinist recently reported that the CEO of cryptocurrency-based payment platform Abra, Bill Barhydt, said that enterprise blockchains, as well as tokens appearing from major global corporations, are “nonsense.” He said:

It’s exactly what’s happening with this enterprise blockchain nonsense; where people have this fallacy that they’re going to make blockchain work inside the firewall. It’s all going to fail miserably[.]

JP Morgan Chase announced its stablecoin dubbed, “JPM Coin,” earlier in February — outlining that its “applications are frankly quite endless.”

What do you think of JPM Coin? Do you agree with Brad Garlinghouse? Don’t hesitate to let us know in the comments below! 

Images courtesy of Bitcoinist archives, Shutterstock.

Bře 30

Upcoming Starbucks Digital Currency Is No Threat To Bitcoin And Fold

Source: bitcoin


It is not the first time there is a connection between Starbucks and digital currency, as users of the Fold App have been able to pay their coffee with Bitcoin for quite some time now. But the major brand is trying to take things one step further, as there is a plan to issue Starbucks digital currency. The so-called Starbucks Rewards “stars’ could become the new official digital currency of this brand in the future, which would be linked to a prepaid debit card.

Also read: Open Source Blockchain Effort, HyperLedger, Elects Leadership Positions and Gains New Investments

Making Use Of The Starbucks Rewards Stars

Similar to most brands and store chains around the world, Starbucks is rewarding loyal customers with an incentive to come back. The Starbucks Rewards Stars can be used for future discounts at the next visit, which are stored inside a user’s mobile app or on their physical customer card.

However, a lot of consumers forget to spend this loyalty reward, which is a relatively common issue among big brands as of late. Checking up on all of the different card and loyalty points balances is becoming a major struggle for consumers, and most people don’t think it will be worth their time. As a result, a lot of Starbucks Rewards Stars remain unspent, and company executives want to do something about this scenario.

By the look of things, Starbucks will introduce their prepaid debit card later this year, thanks to a partnership with JP Morgan Chase. But there is more, as users would earn Stars wherever Visa payments are accepted, increasing the Starbucks brand and visibility. Moreover, there will be very few fees associated with using this card, as there will no charges for monthly services, loading, or overdraft.

This would effectively give consumers a reason to use their prepaid card more often in stores, and save up on Rewards Stars for free coffee afterward. Unfortunately, it remains unclear as to how these Stars will be awarded, although there is a likely chance rewards will trickle in a lot slower compared to buying coffee and food through the existing loyalty program.

Number crunching has to be taken seriously through this effort, though, as consumers will be earning two stars per dollar spent under the current loyalty program. Those rates are not feasible when dealing with prepaid debit cards, as consumers would rack up hundreds of dollars worth of free coffee every month at that rate. Creating a new digital currency is not as easy as people might think.

Not A Threat For Fold App Users

Unlike what most people would have assumed, at first, this new program is no competition for Bitcoin enthusiasts using the Fold App. Starbucks will not be offering instant discounts all of a sudden, as consumers need to rack up Stars first. Moreover, this prepaid debit card will not arrive until later this year.

The main difference between what Fold App offers with Bitcoin and this goal the brand has in mind is how the former offers direct discounts on every purchase, whereas the latter forces users to spend more money for following discounts. Consumers should always prefer an instant 20% discount on their Starbucks purchase, rather than dealing with yet another prepaid debit card solution.

What are your thoughts on the Starbucks plans? Let us know in the comments below!

Source: Business Insider

Images courtesy of Starbucks, Shutterstock, Fold

The post Upcoming Starbucks Digital Currency Is No Threat To Bitcoin And Fold appeared first on Bitcoinist.net.

Upcoming Starbucks Digital Currency Is No Threat To Bitcoin And Fold