Despite the bank’s skepticism on digital currencies, it remains interested in blockchain technology, as it can potentially improve the financial system, co-president of JPMorgan Daniel Pinto said in a CNBC interview.
Why it is important
- JPMorgan Chase is the largest U.S. bank by assets. In 2017, the bank earned more than $100 billion, for the first time since 2010.
- Wall Street firms have gradually begun introducing blockchain technology and experimenting with cryptocurrencies. As the largest bank on the Street, JPMorgan can strengthen this trend.
Daniel Pinto said in the interview:
“We are looking into that space. I have no doubt that in one way or another, the technology will play a role. [Regarding bitcoin], you cannot have something where the business proposition is to be anonymous and to be the currency for unknown activities. That will have a very short life, because people will stop believing in it, or the regulators will kill it. I think the concept is valid, you have many central banks looking into. The tokenization of the economy, for me, is real. Cryptocurrencies are real but not in the current form.”
During the past year, JPMorgan has maintained somewhat of a conservative stance towards cryptocurrencies. Recent statements indicate a thaw in the company's position. Only in September, JPMorgan CEO Jamie Dimon condemned Bitcoin as “a fraud”. Dimon has since softened his rhetoric, saying he “regretted” making the comment in a January interview on FOX Business Network. Personally, Dimon said he is “not interested interested in the subject at all”.
By Ekaterina Ulyanova