In a complete 180 degree turn from previous comments by J.P Morgan Chase CEO and Chairman, Jamie Dimon, and with regards to Bitcoin (BTC) and cryptocurrencies, the company’s co-president, Daniel Pinto, has stated that they are looking into the crypto space. In an interview with CNBC, Mr Pinto had this to say when asked about Bitcoin (BTC) and other digital currencies:
We are looking into that space. I have no doubt that in one way or another, the technology will play a role. [Regarding bitcoin], you cannot have something where the business proposition is to be anonymous and to be the currency for unknown activities. That will have a very short life, because people will stop believing in it, or the regulators will kill it. I think the concept is valid, you have many central banks looking into. The tokenization of the economy, for me, is real. Cryptocurrencies are real but not in the current form.
He also remarked about the current trend of Wallstreet firms offering Futures products on Bitcoin and other prominent cryptocurrencies:
If we need to clear futures of bitcoin, can we do it? Yes. Have we done it? No
Mr. Pinto’s comments came almost 6 months after Jamie Dimon had slammed Bitcoin by calling it a fraud. Mr. Dimon had further declared that his firm was willing to fire any employee willing to trade Bitcoin for it was a stupid act. He would later backpedal on his comments to the delight of cryptocurrency enthusiasts who in turn predicted that it would only be a matter of time before he sees the benefits of the crypto and blockchain industry.
J.P Morgan Chase has done just that when it filed for a blockchain patent back in October. The news was not unveiled until earlier this month. The patent outlines a system that would essentially use distributed ledger technology – blockchain – to keep track of payments sent between financial institutions.
In a nutshell, ‘big’ Wallstreet firms have finally seen the light and are in the process of investing in blockchain technology and cryptocurrencies.
[Photo source, money.cnn.com]