JPMorgan Chase CEO Jamie Dimon sees decentralized finance (DeFi) and blockchain as real, new technologies that can be deployed both privately and publicly. He also said that JP Morgan is at the forefront of this innovation.
JP Morgan’s Jamie Dimon Praises DeFi and Blockchain
JPMorgan CEO Jamie Dimon recognized the merit of decentralized finance (DeFi) and blockchain technologies in his latest annual letter to shareholders published on Monday.
Speaking about his company’s investments in the technology, Dimon said:
Decentralized finance and blockchain are real, new technologies that can be deployed, allowed or not, both public and private.
The CEO elaborated: “JP Morgan Chase is at the forefront of this innovation. We use a blockchain network called LINK to enable banks to share complex information, and we will enable tokenized US dollar deposits with JPM Coin. We also use a blockchain to transfer.
According to its website, 39 countries have now come under the LINK network. Over 25 of the world’s leading banks have signed up to participate and over 400 leading institutions have signed letters of intent to join. The global investment bank said it established LINK to “find more efficient ways of transferring data through custom applications.”
JP Morgan explained that “JPM Coin is a permissioned, shared ledger system that acts as a payment rail and deposit ledger, enabling JP Morgan customers to transfer US dollars held on deposits with JP Morgan.” enables.” The coin “facilitates real-time price movement, helping to solve the common hurdles of traditional cross-border payments,” its website details.
Commenting further on blockchain in his letter to shareholders, Dimon wrote:
We believe there are many uses where a blockchain can replace or improve contracts, data ownership and other enhancements.
Nonetheless, he cautioned that for some purposes, “it is currently too expensive or too slow to deploy.”
Praising decentralized finance and blockchain technologies, Dimon hasn’t warmed to cryptocurrency even after JPMorgan began 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 its limited supply. In May, he advised people to stay away from cryptocurrencies.
Last week, a report by JP Morgan stated that there is limited upside for the crypto markets. However, in February, the firm predicted that the long-term price of bitcoin would reach $150,000. Nonetheless, JP Morgan said there is an urgent need for global regulation to help banks help customers invest in crypto.
What do you think of Jamie Dimon’s comments? Let us know in the comments section below.
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