Jamie Dimon, CEO of JPMorgan Chase, does not believe cryptocurrency projects pose a 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 per day around the globe. It’s very affordable, very secure, and it works. The banking system already has Zelle, real-time p2p and TCH, clearing house, along with real-time payments. All that is needed is already in place.
Dimon stressed that transactions are done in accordance with Know Your Customer regulations and anti-money laundering policies. Although he stated that crypto is unlikely to impact the core bank’s business, Dimon did not deny that there are other competitors and that some companies “want our lunch.”
Dimon states that the firm will continue to offer new services to its customers to remain competitive.
According to reports, JPMorgan will launch its pilot cryptocurrency JPM Coin before the end of 2019. Umar Farooq from JPMorgan, head of digital Treasury Services and blockchain, stated that JPMorgan’s stablecoin could allow “instant” delivery via blockchain of bonds.
Reportedly, the Goldman Sachs’ chief executive David Solomon stated that he believes global payment systems are heading in the direction of stablecoins. He said:
“Imagine all the major financial institutions in the world are interested in the potential of tokenization and stablecoins, as well as frictionless payments.”
Solomon suggested further that tech giants like Facebook could bypass the regulatory constraints faced by banks, urging them to enter partnerships rather than become financial institutions.