JPMorgan CEO Jamie Dimon Talks About Zuckerberg, Libra Launch and Banking Innovation
New statements have emerged from JPMorgan CEO Jamie Dimon in an interview on the possible impact of Facebook’s Libra and what it might mean for banking institutions around the world.
Here is the two to three minute clip specifically about Facebook's Libra comments and how Zuckerberg talked in front of congress. While the whole interview is worthy of a listen, the 12-14 minute mark he talks about Libra and financial innovation.
When asked if it would “made sense” for JPMorgan to partner with pure tech companies such as Facebook Dimon responded:
“I would explore and entertain anything and the facts will tell.”
Dimon was also asked for his opinion if in ten years' time could Facebook emerge as a competitor to JPMorgan and other banks.
“It could be but not in the form they are in,” responded Dimon. “But they might find ways to incorporate banking in ways that competes with us.”
Dimon was also asked to explain what he meant by saying that “Libra is a neat concept that won’t happen.”
“Libra is a neat concept because if you have a problem you need to fix, you need to innovate, I just don’t think that this day in age will be them [Facebook]. We already have a JP Morgan coin, a tokenized blockchain-based coin that can be used to move money, we haven’t made it open to consumers yet.”
He mentioned the need to compete with the Chinese and the ability to make cross border payments better, but does not think it will be Libra who solves this piece of the puzzle. He also referenced the JPMCoin where they can move money back and forth internally. He did reference how banks built Zelle, a real time peer to peer payment system and RTP.
He concluded, “someone will do this by the way” – implying what Facebook's Libra coin has set out to do will be accomplished by someone, but again, does not think it will be the social media giant being the one responsible for innovating in the global payment network arena.