{"id":98603,"date":"2019-02-26T19:06:09","date_gmt":"2019-02-27T03:06:09","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=98603"},"modified":"2026-04-25T06:00:09","modified_gmt":"2026-04-25T05:00:09","slug":"an-era-of-centralized-cryptocurrencies-and-blockchains-binances-dex-and-jpm-coin","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/an-era-of-centralized-cryptocurrencies-and-blockchains-binances-dex-and-jpm-coin\/","title":{"rendered":"An Era of Centralized Cryptocurrencies and Blockchains: Binance’s DEX and JPM Coin"},"content":{"rendered":"

The launch of Binance\u2019s decentralized exchange and JP Morgan's proprietary cryptocurrency, JPM Coin, have raised fundamental questions about where the crypto industry is headed. Both products fall short of traditional definitions of decentralization, and instead, stake territory somewhere between the Facebooks and the Bitcoins<\/a> of the Internet.<\/p>\n

JPM Coin and the Definition of Cryptocurrency<\/h2>\n

When JP Morgan\u2019s JPM Coin was first launched<\/a> on Feb. 14, 2019, pundits from mainstream media outlets labeled<\/a> it the \u201cBitcoin Killer.\u201d The hyperbolic title indeed earned a ton of clicks, but a deeper dive into the technology reveals it has little in common with the pioneer cryptocurrency.<\/p>\n

There is also added hypocrisy when it comes to the CEO of JP Morgan, Jamie Dimon, going from calling bitcoin a \u201cfraud\u201d and then later retracing these statements. He later regretted<\/a> his earlier comments on Jan. 2018 and admitted that \u201cblockchain is the real deal.\u201d With JPM Coin, Dimon may have come full circle, but crypto commentators seem wary to welcome him into the community.<\/p>\n

Since its launch, JPM Coin has been heavily critiqued for not being a cryptocurrency. Brad Garlinghouse<\/a>, the CEO of Ripple<\/a>, commented<\/a> that the closed network model of JPM Coin \u201cmisses the point\u201d of what Bitcoin set out to achieve more than a decade ago.<\/p>\n

In 2016, Garlinghouse predicted<\/a> the rise of \u201cBankCoins,\u201d but ultimately concluded that a bank-issued digital asset would \u201crecreate today\u2019s system but [add] more friction.\u201d If every bank were to create their own digital asset and then wanted to transact with one another, they would have to one again make markets thus obliterating any efficiency gained from using a digital token.<\/p>\n

Although Ripple\u2019s CEO makes an interesting point, he is also highly-incentivized to prevent the rise of BankCoins. Ripple\u2019s XRP<\/a>, like JPM Coin, serves a very similar markets. Both are positioned to improve the money transfer and both report instantaneous bank payments between clients.<\/p>\n

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pic.twitter.com\/k4CgHMe3GV<\/a><\/p>\n

— Jerry Brito (@jerrybrito) February 14, 2019<\/a><\/p><\/blockquote>\n