Jamie Dimon, the CEO of JPMorgan Chase does not believe that cryptocurrency projects pose an existential threat to the firm’s core business.
Dimon shared his thoughts about crypto’s potential impact on the existing banking system during an interview with Yahoo Finance on June 27:
“We move $6 trillion a day around the world. It is very cheap, very secure, it works. And the banking system has already built Zelle, real time p2p, and TCH, the clearancing house, with the banking system built real time payments. We already have all that.”
Dimon went on to stress that all transactions are conducted in compliance with Know Your Customer and anti-money laundering procedures. Though, he did states that the bank’s core business not likely to be threatened by crypto, he does not deny the competition adding that some firms “want to eat our lunch.”
Dimon adds that in order to stay competitive, the firm will continue to develop new offerings for its customers, such as free trading, robo investing, among others.
Reportedly, JPMorgan is planning its own pilot cryptocurrency JPM Coin by the end of 2019. Umar Farooq, head of digital treasury services and blockchain at JPMorgan added that the bank’s stablecoin has a potential to enable “instant” delivery of bonds via blockchain.
Reportedly, the Goldman Sachs’ chief executive David Solomon stated that he believes global payment systems are heading in the direction of stablecoins. He added:
“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments.”
Solomon further suggested that tech giants such as Facebook could avoid the regulatory constraints that banks face, purportedly pushing the firm to enter into partnerships than to become financial institutions themselves.
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