JP Morgan CEO Talks on Facebook’s Libra: Won’t Spend Too Much Time On It, Multi-Year Conversation
On Tuesday, Dimon was requested to give his opinion about the Libra cryptocurrency project that is set to be launched in the near future and has attracted the wrath of none other than President Trump and his administration officials. The J.P. Morgan Chase CEO said that he did not consider Libra as a short-term threat to his company and the entire financial system.
He stated that the blockchain and crypto industry has been in existence for the last 7 years and, so far, has not threatened the financial sector. Dimon, who was speaking at a conference call with analysts said:
“We’re going to be talking about Libra three years from now. I wouldn’t spend too much time on it.”
However, Dimon was quick to hail his crypto project as one with the capacity to change the world’s payment landscape, JPM Coin. the CEO of the largest bank in the US said that the bank’s crypto project will remain within the country’s legal confines.
Since Facebook announced that it will launch the Libra crypto project in the near future, an announcement that was made last month, central banks across the world as well as policymakers and legislators have raised their concerns. Perhaps, the fear of the unknown of what the largest social media company will do with its latest addition is fuelling the concerns. Just last week, the US president tweeted that if the tech-based company wanted to venture into the banking sector then it must adhere to the set banking regulations.
President Trump’s sentiments were echoed by Dimon who said that he believes that any new projects in the financial sector must adhere to the industry’s rigorous anti-money laundering regulations that were developed after the 2008-09 financial meltdown. He said that his bank was not afraid of any competition but insisted that the playing ground must be level. He said:
“We don’t mind competition, the request is always going to be the same: We want a level playing field. And governments are going to insist that people who hold money or move money all live according to rules where they have the right controls in place; no-one wants to aid and abet terrorism or criminal activities.”
Apart from President Trump’s concerns about Libra, the Congress members have also registered their concerns and some have called for a halt of the project until everything is clear. It is on this basis that the Senate Banking Committee is set to hold a hearing on Libra on Tuesday. The senators are seeking to understand the project in details and have summoned Libra’s top officials.
Do you think Libra will be an immediate threat to the banking and financial institutions after its launch? Share your thoughts with us in the comments section.