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

This he stated when he was talking about the Stable coins from JP Morgan that has been pegged to the USD. For every JPM coin that institutional investors transact in, they need to give the bank a dollar. Thus the funds can be moved only within the limits of the Centralized JPMorgan ledger.

He further tweeted, “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.”

He further went ahead questioning if Citi, Bank of America, or PNC might have any interest in the JPM coin and “The answer’s no.”

He concluded with a complaint that if we have all of these different coins pegged to stable coins, we will be back to square one due to lack of interoperability. He complained stating “I don’t get it.”

Garlinghouse implies there is no real use case to JPMCoin.  

XCurrent from Ripple is the longest available and most adopted product from Ripple being used for cross border payments. It has been long argued as to when settlements happen within a few seconds without XRP why it should be used at all? This is because it is cheaper and faster to make payment settlements with XRP than with the Fiat/Fiat exchange pairs.

If a Nostro Vostro arrangement has been made between banks, xCurrent will be able to build balances on both ends within seconds. Being built on the Interledger Protocol, xCurrent will be able to exchange the real-time FX rates.  Nostro accounts are not sustainable for most organizations due to the expenditure as it is difficult to maintain the accounts. The expenditure factor is the major reason why Nostro accounts are considered unsustainable for most of the organizations.

Small organizations pay their big Brethren to make use of these international transaction systems, therefore the small and mid-size banks are left with no other option than to fix a fee on their customers for the transaction.

Nearly 5 trillion dollars are dormant in several accounts across the world thereby typing up the capital in dormant accounts.  If there were a better way to make international transactions, these funds could be used more productively.

XRP is volatile, and FIAT is volatile as well.  Since the risks of rate fluctuations are too high in certain currencies, banks do not encourage nostro-vostro relationships for specific currency types. Thus stable coins are appropriate when it comes to cross border payments. When stable coins are moved only the “promise of value” is moved; the value is not moved.