Jamie Dimon of JPMorgan Ditches Cryptocurrency And Supports Blockchain

Aug 6, 2018 at 10:09 Update Date :Aug 6, 2018 at 10:09 UTC

CEO of JP Morgan Chase, the famous American Bank, does not favour Cryptocurrency, he however, comes up to strongly support the blockchain technology.

Jamie Dimon, the bank CEO, acknowledges the potential that the blockchain technology holds, regardless of the fact that it was originally introduced as the ‘building block of cryptocurrency’. In an interview with the  Harvard Business Review, Dimon made a negative remark directed towards the fiat payment apps. The published article quoted him, calling the apps as “the biggest potential disruption to their business.”

This interview was concerned with the existing competition between JP Morgan Chase and the rest of the ventures of their sector. When questioned about the biggest ‘break-in’, Dimon mentioned the upcoming forms of payment.

In his words, “these companies are doing a good job of embedding basic banking services in their chats, their social, their shopping experience.” He alludes to the various firms which furnish people with advanced payment options naming PayPal, Venmo, and Alipay amongst the few.

Jamie did not make a clearly negative statement in regard of crypto-coins, which would be expected by a bunch of analysts from the industry. He rather, abstained from making any remark. “I probably shouldn’t say any more about cryptocurrency,” was all that he mentioned. Throughout the discussion, however, his outlook towards blockchain technology was quite definite. He referred to it as ‘real’ and plans to opt it soon. This, at the same time, could imply that cryptocurrency is unreal and cannot be relied upon.

Nevertheless, it is extremely necessary to be mindful of the fact that the Bank and it’s CEO, do not always possess similar standpoints. Dimon, might sound uncertain of his own viewpoint. In the month of September 2017, while in a meeting with the investors, he termed Bitcoin as a “fraud”, wherein he also published a warning to fire the employees trading crypto-tokens. Later, in January he was cited mentioning, that he was not a ‘skeptic of cryptocurrency’.

On the other hand, the firm, in the context of cryptosphere, mentioned that it is the “face of the innovative maelstrom around the blockchain technology.”

The CEO, later recognised the capacity of cryptocurrency to bring competition in the industry and pose great threat to their business. He then mentioned that crypto tokens had the potentiality to “put downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share.”

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