JPMorgan’s Jamie Dimon calls blockchain “real”, denying cryptocurrency “same as gold” 20404
News
Ashmita Dutta
Aug 6, 2018 at 9:15 PM

JPMorgan Chase CEO,Jamie Dimon has praised blockchain technology as being “real” while refusing to express much opinions about cryptocurrency. JPMorgan is the largest among the Big Four banking institutions of America, including, Bank of America, Wells Fargo and Citigroup. In an interview, he has informed about the scopes in which JPMorgan will leverage blockchain technology, however, not emphasising much about cryptocurrecy.

The Interview

In July-August edition of Harvard Business Review, Dimon has given an interview stating that apps related to fiat payment are “the biggest potential disruption to our business.” In the interview, his opinions regarding JPMorgan’s principle competitor was asked. In this context, he replied stating “new forms of payment.”

Referring to the prominent organisations like Venmo, Alipay and PayPal, he has commented, “These companies are doing a good job of embedding basic banking services in their chats, their social, their shopping experience.” However, he has not termed digital currenciespotential disruptor” while expressing his views on them. According to Dimon, “I probably shouldn’t say any more about cryptocurrency.

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During the interview, he has explicitly specified that cryptocurrency is “not the same as gold or fiat currencies.” This is because they are “supported by law, police, courts [...] [are] not replicable, and there are strictures on them.”

He has deliberately called blockchain “real” such that without his explicit statement, cryptocurrencies appear sceptical. According to his statement, currently, JPMorgan is in a testing phase of the technology and will eventually “use it for a whole lot of things.”

The statements and opinions regarding cryptocurrency from JPMorgan’s perspective have been ambiguous and contrasting. In February, 2018 the internal report of the bank described virtual currencies as the “face of the innovative maelstrom around the blockchain technology.

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On the contrary, in September last year, Dimon himself tagged Bitcoin as a “fraud” at a gather of investors. On this occasion he declared taking stringent measures like expelling an employee if involves the account of the company to trade in Bitcoin [BTC].

However, on 27th February, 2018 in a filing of SEC, JPMorgan placed cryptocurrency under the segment of “Competition.” Herein, he commented that digital currencies may “put downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share.”

Nevertheless, whenever the issue of blockchain technology comes up, he is always ready to voice out his support for it. Even on 3rd May, 2018 the bank issued a patent concerning blockchain technology.

Image via Google

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