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- JPMorgan is one of the leading international banks on the globe.
- An executive says that many cryptocurrencies do not have use cases.
- At the time of publication, the cryptocurrency sector had a market cap of 992.94 Billion USD.
Is Majority of Crypto Useless?
Umar Farooq, the head of the digital asset unit of JPMorgan, a multinational investment bank, has suggested that most of the crypto assets in the industry are ‘junk.’ He also emphasizes that many use cases associated with virtual assets are still unknown.
While attending the Monetary Authority of Singapore’s Green Shot Seminar’s panel discussion, Umar said that ‘ the regulations need to catch up in this tumultuous cryptosphere, which is creating hindrances for inclusion of several conventional financial institutions.
He also suggested that, except for a handful of crypto assets, many of them lack utility. He said that ‘Majority of crypto is junk in reality, excluding a few dozen of these assets, everything persisting in this industry appears noisy or will go away eventually. He further added that ‘The use cases are not completely out there, and there are not enough regulations and this is the main reason the finance sector is still lacking behind in catching up.
The multinational bank’s executive also argued that this industry has not reached to the level where it can be used at scale to facilitate essential transactions among the traditional financial institutions or to host products like tokenized deposits. Instead, Umar recommended that blockchain, cryptocurrencies and Web3 movement is majorly offering a vehicle for wild speculation currently.
He said that ‘People need all the things to mature to make use of them. Currently, folks are still lagging behind, the majority of funds everyone is using today, is primarily for speculative investment. While the multinational bank has become somewhat crypto-friendly over the past two years, they are keeping the blockchain technology on priority, and how it can be utilized to specifically make traditional finance services better.
As of this writing, the cryptocurrency market had a total market capitalization of 992.94 Billion USD, with Bitcoin dominating the market.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
