Jamie Dimon, CEO of JPMorgan Chase, sees decentralized finance and blockchain as real and new technologies that can be deployed in both private and public fashion. He also noted that JPMorgan is at the forefront of this innovation.
JPMorgan’s Jamie Dimon Praises Defi and Blockchain
JPMorgan CEO Jamie Dimon acknowledged the advantage of decentralized finance and blockchain technologies in his latest annual letter to shareholders, published Monday.
Speaking about his company’s investments in technology, Damon said:
Decentralized finance and blockchain are real and new technologies that can be deployed in both public and private ways, with or without permission.
The CEO explained, “JPMorgan Chase is at the forefront of this innovation. We are using a blockchain network called Liink to enable banks to share complex information, and we are also using the blockchain to transfer US dollar deposits tokenized with JPM Coin.”
According to its website, 39 countries are now covered under the Liink network. More than 25 of the world’s leading banks have signed up to participate, and more than 400 leading institutions have signed letters of intent to join. The global investment bank said it “created Liink to find more efficient ways to transfer data through dedicated applications.”
JPMorgan explained that “JPM Coin is a licensed common ledger system that serves as a payment path and deposit ledger, allowing participating JP Morgan customers to convert US dollars deposited with JP Morgan.” The coin facilitates the movement of value in real time, helping to solve common obstacles to traditional cross-border payments, according to the details of its website.
Commenting on blockchain in his letter to shareholders, Damon wrote:
We believe there are many uses where blockchain can replace or improve contracts, data ownership, and other improvements.
However, he cautioned that, for some purposes, “it is currently too expensive or too slow to deploy”.
While praising decentralized finance and blockchain technologies, Dimon is not ready for cryptocurrency, even after JPMorgan started offering some crypto-related products to customers.
Dimon warned in November of last year: “Cryptocurrencies have no intrinsic value… I would be very careful.” In October, he said bitcoin was worthless and questioned the limited supply. In May, he advised people to stay away from cryptocurrencies.
A JPMorgan report last week stated that there is limited upside for the cryptocurrency markets. However, in February, the company predicted that the long-term price of Bitcoin would reach $150,000. However, JPMorgan said global regulation is urgently needed for banks to help clients invest in cryptocurrency.
What do you think of Jimmy Damon’s comments? Let us know in the comments section below.
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