Talk about changing your mind. Or, seemingly “flipping and flopping” on the validity of crypto (bitcoin in particular) every few months. It now seems JPMorgan embraces cryptos……after developing one of their own. Remember Jamie Dimon’s famous statement ‘Bitcoin is crap’ (or something like that) and speculating bitcoin is ‘going to zero,’ then reversing himself, thinking there may be something to BTC. Again, a short time ago JPMorgan just didn’t ‘get’ cryptocurrencies but now, after quietly working on its very own stablecoin, thinks it may be time to be bullish on all things crypto. Sure, when they have it, it’s all good. Maybe that’s why its hard to trust banks, or maybe Jamie is thinking about becoming a politician. Dig deeper below for JPMorgan’s latest (ever evolving) stance.
(Bill Taylor/Fintek Capital)
“It’s no secret that the executives sitting at the top of JPMorgan Chase – one of the largest banks in the world – are not the biggest fans of Bitcoin and other similar cryptocurrencies.
Although the bank’s disdain towards the nascent technology initially appeared to be genuine – and possibly rooted in fear – it now appears that they are, in fact, bullish on the tech – as long as they are the ones controlling it.
JPMorgan Executive: Crypto Innovators Still Have to Use Traditional Banks
Although one selling point of decentralized cryptocurrencies is that they allow individuals to side-step the traditional banking system, and therefore avoid the sheer amount of inefficiency and cost that can be associated with traditional financial systems, one JPMorgan executive is quick to point out that crypto companies still have to use traditional banks.
In a recent interview with CNBC’s Squawk Box, Ron Karpovich, the Global Head of eCommerce Solutions at JPMorgan Chase, explained that the traditional banking system is so intertwined with the world presently that there is no true way around avoiding it, further adding that payments are not the most profitable industry.
“Ultimately behind the scenes, they [crypto companies] are going to have to use a bank to move funds. There’s more partnership instead of competition in that space… When it comes to margins and capabilities, payments is never something that grows in margin, nobody wants to pay for a payment…so you need highly efficient and large players,” he explained, further affirming the imperative role that big banks play in payments…