Jamie Dimon is the CEO of JPMorgan Chase and sees decentralized financing (defi), as well as blockchain, to be real new technologies that are both available in public and private sectors. He pointed out that JPMorgan has been at the forefront for this innovation.
JPMorgan’s Jamie Dimon Praises Defi and Blockchain
Jamie Dimon, CEO of JPMorgan recognized the value decentralized finance (defi), and blockchain technology in Monday’s annual letter to shareholders.
While talking about his company’s investments in technology, Dimon said:
The real-life, innovative technologies of decentralized finance and blockchain can both be utilized in private and public settings.
The CEO elaborated: “JPMorgan Chase is at the forefront of this innovation. We use a blockchain network called Liink to enable banks to share complex information, and we also use a blockchain to move tokenized U.S. dollar deposits with JPM Coin.”
Its website states that the Liink network now covers 39 countries. More than 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 that it “established Liink to find more efficient ways to transfer data through custom applications.”
JPMorgan explained that “JPM Coin is a permissioned, shared ledger system that serves as a payment rail and deposit account ledger, enabling participating J.P. Morgan clients to transfer US Dollars held on deposit with J.P. Morgan.” The coin “facilitates real-time value movement, helping to solve common hurdles of traditional cross-border payments,” its website details.
Dimon commented further on blockchain in his letter addressed to shareholders:
Blockchain can be used in many ways, including to improve data ownership and contracts.
Nonetheless, he cautioned that for some purposes, “It is currently too expensive or too slow to be deployed.”
Dimon is a fan of decentralized financial technology and blockchain technologies but has not been open about cryptocurrency. This was even after JPMorgan introduced some crypto-related products for clients.
Dimon warned in November last year: “Cryptocurrency has no intrinsic value … I would be very careful.” In October, he said bitcoin was worthless and questioned its limited supply. He advised that people avoid cryptocurrency in May.
JPMorgan reported last week that the upside potential for cryptocurrency markets is very limited. In February however, JPMorgan predicted that bitcoin will reach $150,000 over the long term. JPMorgan stated that banks need to implement global regulations in order for clients to invest in cryptocurrency.
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