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In a recent letter to shareholders, JP Morgan Chase CEO Jamie Dimon expressed strong support for decentralized finance and blockchain technology.
The CEO of JP Morgan acknowledges the potential of blockchain in a variety of industries, as well as the danger posed by fintech firms.
His new position on crypto appears to be a 180 from his past positions, and more in line with his company’s.
“Decentralized finance and blockchain are real”
“Decentralized finance and blockchain are real, new technologies that can be employed in both public and private settings, with or without authorization,” stated Dimon.”JPMorgan Chase is at the cutting edge of this technology.”
The letter, which was sent out yesterday, covered a variety of themes, including the geopolitical environment, macroeconomic conditions, the changing competitive landscape, and company investments. When discussing the latter, Dimon points out that JP Morgan has spent the previous five years upgrading the business in order to “compete with both banks and fintech businesses.”
JPM coin, a US dollar-backed stablecoin developed for usage by big corporations, was one of its new developments in 2019. It provides both “account validation” and “programmable payments” to the bank.
The stablecoin is based on the LIINK blockchain, which was created in 2017 and is currently used by over 400 financial institutions.
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Worthless asset: Not a fan of Bitcoin
Non-permissionless and even non-financial blockchains are gaining popularity. Last month, the US Government Accountability Office published a study on the benefits and drawbacks of using blockchain in pharmaceutical supply chains and creating digital IDs.
Similarly, JP Morgan CEO Jamie Dimon believes that “a blockchain can replace or improve contracts, data ownership, and other advancements” in many cases. However, there are still some use cases where it is “currently too expensive or slow to implement.”
Dimon also acknowledges that fintech competition is “intensifying” and leading to banks’ declining influence in the global financial system.
Despite his enthusiasm for blockchain, Dimon made no specific mention of Bitcoin, which he has never been a fan of. He has referred to assets as “worthless,” and has advised investors to avoid them.
Last October, though, the CEO admitted that some of his clients disagree with him. As a result, he’s suggested that his organization would be happy to give investment choices to Bitcoin enthusiasts.
The bank predicted a “long-term” Bitcoin price of $150,000 just two months ago.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
