If JPMorgan Chase’s cryptocurrency is indeed successful, and the bank experiences significant efficiency and other operational advantages by using it, I’d be surprised if other banks didn’t do something similar by creating their own proprietary, dollar-denominated cryptocurrencies as well.
While there are many factors that determine cryptocurrency prices, it’s fair to say that just like stocks, at least some of their price is based on investors’ perceptions of their future potential. In other words, bitcoin’s price isn’t just based on how many people are using the cryptocurrency as a form of payment today.
So, if banks do start creating and using their own cryptocurrencies on a large scale, it could certainly spell trouble for cryptocurrencies like Ripple, Stellar, and several others whose specific purpose is to facilitate rapid settlement of payments.
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Source – https://www.fool.com/amp/investing/2019/02/15/jpmorgan-chase-cryptocurrency-jpm-coin.aspx