Home Blockchain JPMorgan Chase CEO says he’s not skeptical of blockchain, DeFi and utility tokens

JPMorgan Chase CEO says he’s not skeptical of blockchain, DeFi and utility tokens

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JPMorgan Chase CEO says he’s not skeptical of blockchain, DeFi and utility tokens

On Wednesday, September 21, JPMorgan Chase CEO Jamie Dimon shared his thoughts on blockchain technology in general and cryptocurrencies in particular during his testimony before the US Congress.

His comments were made during a audience (entitled “Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks”) of the United States House Committee on Financial Services.

At some point during this hearing, Dimon, who was one of seven “megabank” CEOs on the witness list, was asked a question by Josh Gottheimerthe U.S. Representative for New Jersey’s Fifth Congressional District since 2017.

Congressman Gottheimer, who serves on the House Financial Services Committee, where he serves as vice chairman of the subcommittee on national security, international development, and monetary policy, told the CEO of JPMorgan Chase:

I’d like to ask about another topic that I’ve been focusing on a lot, which is the rapid development of digital assets and related fintech. I think the United States should lead the development of emerging technologies, such as distributed ledgers and blockchain, and the federal government should provide what the country certainly needs to serve as a hub for financial innovation. And I have drafted legislation to help define qualified stablecoins, which the president and grading member are also working on, and to select the appropriate regulator.

I read that you were a little skeptical of some of these new technologies, but what are the main things that are preventing you from being more active in space, and are you worried that we are missing the boat and We are giving other nations like China an opportunity to advance their digital currency and other payment systems that could undermine the US dollar and I would love to hear your thoughts on this.

Dimon replied




So you have to separate the blockchain, which is real DeFi, which is real ledgers, you know the tokens to do something and provide information, money, ideas, simplify smart contracts. It’s a thing. I’m not a skeptic… I’m a major skeptic of crypto tokens you call money like bitcoin. These are decentralized Ponzi schemes and the notion [that] it’s good for everyone is amazing.

So we sit here in this room and talk about a lot of things, but two billion dollars have been lost every year. $30 billion in ransomware, AML, sex trafficking, theft. It’s dangerous. There will be nothing wrong with the stablecoin properly. It’s like a properly regulated money market fund.

On April 4, 2022, Dimon spoke about blockchain technology and decentralized finance (DeFi) in his company’s annual shareholder letter.

In the “Investments and acquisitions: determining the best use of capital and evaluating the return on investment” section of this reporthe stated:

We now process payments for eight of the top 10 global Big Tech companies (up from three out of 10 five years ago), consistently winning deals from strong competitors. We continue to bring to market and market innovative products, such as integrated banking services; AI-based fraud checks and predictions; and account validation and programmable payments on JPM Coin.

Decentralized finance and blockchain are real new technologies that can be deployed publicly and privately, licensed or not. JPMorgan Chase is at the forefront of this innovation. We use a blockchain network called Liink to allow banks to share complex information, and we also use blockchain to transfer US dollar deposits with JPM Coin.

We believe there are many uses where a blockchain can replace or enhance contracts, data ownership, and other enhancements; for some purposes, however, it is currently too expensive or too slow to deploy.

We plan to achieve double-digit market share over time in payments, being the most innovative bank in the world, as well as the most secure and resilient.

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