On Thursday, JP Morganannounced that they had created the "JPM Coin." This is an XRP like digital coin token whichwill be used to settle transactions instantly. This coin utilized Blockchain, which is a digital ledge technology whichpowers the major cryptocurrency projects. The JPM Coin is being addressed to as the crypto.

Roubini quickly tweeted about how the JP coin wasa stable coin and not a cryptocurrency. He tweeted: “In which way has the newalleged JPMorgan crypto-coin anything to do with blockchain/crypto. It isprivate not public, permissioned not permissionless, based on trustedauthorities verifying transaction not trustless, centralized not decentralized.Calling it crypto is a joke.”

However, JP Morganprovided a clarification that this new asset type was a “Stable Coin” and not acryptocurrency. It provides for 1:1redemption. They are using apermissioned blockchain network, and therefore only those customers who passthe institutional customer test will be able to gain access to it per the JPMorgan KYC standards.

Brad Garlinghouse, theRipple CEO disagreed with the use cases of cryptocurrency. He stated that the project misses the pointby tweeting: "As predicted, banks are changing their tune crypto, but theJPM project misses the point. Introducing a closed network today is like launching AOL after theNetscape's IPO." He further added that "After two years banks arestill not the answer.”

According toGarlinghouse, XRP is the best shot that can genuinely help to bring paymentsystems into the modern era.

Joe Weisenthal, stated,"He fails to see Ripple's XRP compete with the forthcoming JPM coin."

Regardless of allcriticisms, JPM coin is set to move into the real-world trials in just a fewmonths. The bank keeps moving $6trillion in a day as a part of their business and JPM coin will be used tosettle transactions between the wholesale payments carried on by companies inreal time.

Umar Farooq, theblockchain lead at JPMorgan states that there are three main use cases for thebank token like replacing wire transfers in international payments for largecorporates, thereby cutting down on the settlement times from days to just afew moments. He also stated that it canbe used in instant settlement of securities issuance and also to replace USdollars that are held internationally by major corporations who will be usingJPMorgan’s treasury services.

It has as well been madeclear that JP Morgan will not just back the greenback. The limited access factor about onlyinstitutional players will be able to transact remains the same.