JPMorgan Chase’s president that crypto “is kind of irrelevant in the scheme of things.” Commenting on the U.S. economy, he defended the Federal Reserve’s hawkish stance, emphasizing that if the Fed’s action “causes a slightly deeper recession for a period of time” then “that is the price we have to pay.”
JPMorgan Chase President, U.S. Economy and Recession
In an interview published by CNBC Monday, Daniel Pinto, President of JPMorgan Chase, spoke out about the U.S. Economy and Cryptocurrency. Pinto is also the global investment bank’s chief operating officer and CEO of its Corporate & Investment Bank.
The 59-year-old executive grew up in Argentina as a child where inflation was often very high, he shared, noting that living with pervasive inflation was “very, very stressful.” Price increases in Argentina averaged more than 300% a year from 1975 to 1991.
That’s why when people say, ‘the Fed is too hawkish,’ I disagree. I think putting inflation back in a box is very important … If it causes a slightly deeper recession for a period of time, that is the price we have to pay.
JPMorgan President John McClure stressed that inflation cannot be allowed to become embedded in the economy. It also pointed out that any premature return to an easier monetary policy risked repeating the errors of the 70s, 80s.
Crypto Is ‘Kind of Irrelevant’
The JPMorgan CEO commented on crypto and claimed that little has been done to institutionalize it. Pinto commented:
In reality, crypto today is an obscure asset that has lost its relevance in the grand scheme of things.
However, he noted: “But the technology, the concepts, something is probably going to happen there; just not in its current form.”
In contrast to Pinto’s belief, many big companies and banks are seeing increased institutional interest in crypto, and are ramping up their crypto services. In September, Nasdaq created a crypto unit to address the increased demand from institutional investors for digital assets. State Street, a financial giant, recently stated that they see no decrease in institutional demand. Citi, Wells Fargo and BNY Mellon all invested in Talos, citing an increase in institutional adoption.
Jamie Dimon of JPMorgan Chase also believes in blockchain and decentralized financial (defi). However, he said that cryptocurrencies, including bitcoin, are “decentralized Ponzi schemes.”
Let us know your thoughts on the comments made by Daniel Pinto, President of JPMorgan Chase. Comment below.
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