JP Morgan’s internal cryptocurrency called the JPM Coin doesn’t seem to have a lot of fans in the cryptocurrency space, with yet another nay-sayer lashing out at the investment bank’s bold move. Charles Hoskinson, the co-founder of Ethereum; creator of Cardano, and CEO of IOHK, called the JPM Coin an abomination.
Speaking at the Hybrid Summit, Hong Kong, Hoskinson did not mince his words when asked about JP Morgan’s crypto-turnaround and the introduction of an internal payments cryptocurrency for the bank’s clients. He stated:
“I saw the JP Morgan Coin, and listen – you guys just don’t get this space. You don’t know how any of these things work. It’s an abomination of a concept.”
Banks have mulled an internal currency that can be used for cross-border transactions and internal administrative needs, but no one ever introduced a cryptocurrency. However, Hoskinson called this an “executive fantasy,” adding that such a coin will have “no need or utility”.
“It’s just a proof of concept for the sake of being a proof of concept to say that they’re in the space, and they can justify some sort of bizarre executive fantasy.”
Cryptocurrency proponents often see traditional Wall-Street bankers as the conniving and deceitful scammers that the decentralized world was created to fight against. Hoskinson referred to them as “criminals,” who have done “horrible things over the last few decades”.
Hoskinson said that the current rate of growth of the cryptocurrency industry will result in an inevitable clash between the disruptors, the virtual currency economy, and the legacy, the traditional financial order.
The JPM Coin, in his opinion, is an example of the dying embers of an industry on death row, desperately trying to prove its relevance in a changing technological and financial world. He stated:
“But I see these things as the last vestiges of a dying industry trying to achieve some form of relevance. And I have very little respect for this type of work. I don’t see it as a positive thing.”
Charles Hoskinson, besides being a mainstay in the cryptocurrency industry since its early days, is also an avid promoter of blockchain technology. He propagates its use on a macro-level, with an objective of not just corporate-integration but integration on a global-economy level.
“Once you have blockchain tech, you have digital identities, you have wallets, and then you can link them to permissionless systems like Cardano and Ethereum, and give them access to credit, insurance, remittances and these types of things.”
Hoskinson is not alone in his JPM Coin criticism, other big names in the financial and cryptocurrency field have lashed out at the BankCoin too. The CEO of Ripple, Brad Garlinghouse, stated that the JPM Coin “misses the point,” adding that a cryptocurrency backed by fiat is a “liability”.
Nouriel Roubini stated that calling the JPM Coin a cryptocurrency “was a joke”. Referring to the coin as a “pseudo crypto coin,” he compared it to the second largest altcoin in the market, XRP.