Nouriel Roubini says JP Morgan’s cryptocurrency JPM Coin is a joke; compares it to XRP

Nouriel Roubini aka Dr. Doom has always been against cryptocurrencies and blockchain, but Roubini’s tweets regarding JP Morgan’s cryptocurrency suggests that he acknowledges cryptocurrencies.

JP Morgan, an American financial services company and bank, recently launched its own cryptocurrency called “JPM Coin”, which was created to settle payments between clients. JP Morgan, as a result, became the first major bank to launch its own cryptocurrency in the US.

The cryptocurrency faced a lot of heat from the cryptocurrency eco-system as they called it centralized as it basically destroys the ethos of blockchain and the first cryptocurrency, Bitcoin, which was created to take control away from centralized authorities.

Nouriel Roubini was one among such people who disliked the idea of a bank coin. Roubini tweeted:

“In which way has the new alleged JPMorgan crypto coin anything to do with blockchain/crypto? It is private not public, permissioned not permissionless, based on trusted authorities verifying transaction not trustless, centralized not decentralized. Calling it crypto is a joke.”

The JPM Coin is similar to stablecoins in concept as it can be redeemed for $1 and as CNBC reported, clients will be issued the coins after depositing dollars at the bank; after using the tokens for a payment or security purchase on the blockchain, the bank destroys the coins and gives clients back a commensurate number of dollars.

Nouriel Roubini went on to compare the JPM coin and XRP. Roubini retweeted his aforementioned tweet with a comment:

“Ditto for XRP. It is as much of a joke as the new JPMorgan new pseudo crypto coin.”

Even though a lot of people in the crypto-community hated the idea of a bank-issued coin, some applauded it. Twitter user @Tusharjain tweeted:

“Banks were obviously never going to use XRP for settlements and enrich Ripple Inc (who owns more than half of all XRP). They would rather enrich themselves instead!
Kudos to JPM for being first. They are going to wipe the floor with Ripple.”

Miked Dudas, the founder, and CEO of The Block, commented:

“JP Morgan, the bank whose CEO Jamie Dimon has called Bitcoin a “scam” + said “I don’t really give a shit about Bitcoin” is launching its own cryptocurrency.
When @TheBlock__ inquired a month ago, JP Morgan blockchain execs denied this was in the works.”

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