Crypto Innovators Will Need A Bank To Move Funds And Payments, JPMorgan Executive Affirms
Crypto Innovators Will Need A Bank To Move Funds, JPMorgan Executive Affirms
The Global Head of eCommerce Solutions at JPMorgan Chase, Ron Karpovich, has recently affirmed that crypto “disruptors” are more of a partner than a competitor to banks. Why would he say that when the crypto ecosystem is so consistently anti-banks? Because he believes that even these innovators will need an actual bank to move the funds.
Karpovich made these allegations during a recent interview with CNBC’s Squawk Box as an answer to when the host talked about how banks would compete with the new industry of blockchain-based companies and cryptocurrencies.
The JPMorgan exec has affirmed that, behind the scenes, these innovators will obviously need banks. They would simply not be able to move their funds around without them. They can’t simply ignore them and this means that the success of these companies will basically end up being the success of the banks as well.
By believing that payments have to be efficient even when they are made in large portions, Karpovich defended that the banking space is very consolidated in the payments industry and that this is basically a prime requirement.
According to him, the blockchain could, indeed, cause a revolution in the payment industry across the globe. However, this does not mean that they will be using cryptos like Bitcoin, there is the possibility that they will not even see the change from their point of view, only perceive that transactions are getting faster as time passes.
JPM Coin And The Future
This stance is easy to understand when we think about JPM Coin. What the company is doing, in this case, is not simply deciding to join the cryptocurrency market. In fact, it’s quite the opposite.
Jamie Dimon, the CEO of JPMorgan Chase, is notoriously against Bitcoin, and he was mocked when JPM Coin was announced because he affirmed that cryptos would never be the future. What the bank is doing here, however, is not accepting that cryptocurrencies are the future, but taking the blockchain technology and integrating it into their own systems.
Karpovich affirms that they did what any company would do. They looked at a cheaper and more efficient technology and tried to create new ways to use it to enhance what they are already offering. It’s not about changing sides but strengthening their own side.
The executive also believes that JPMorgan will be an important player in the blockchain space and that the bank’s new Quorum platform will be very important for the development of the future. At the moment, the response about JPM Coin has been mixed, but the negative reviews of it are mostly from the crypto sector, which is not too friendly with banks in any case.