JPMorgan Chase’s Jamie Dimon Testifies on Capital Hill Regarding Blockchain and Cryptocurrency
Investors in both cryptocurrency and traditional finance know who Jamie Dimon is. Dimon, the chairman, and CEO of JPMorgan Chase has been a longtime opponent of the cryptocurrency industry, refusing to be involved. He made waves in the crypto community this year when he announced that the Big Four bank would be adding the JPM Coin, which many investors and crypto loyalists have refused to even call a cryptocurrency.
Most recently, Dimon was part of a group of CEOs that testified in Washington, DC. The group was collected to speak on the way that the cryptocurrency adventure has changed the financial sector over the last decade after the financial crisis.
The hearing started by introducing the technology, saying that the United States is behind the rest of the world in their own blockchain development. The lack of regulatory certainty received most of the blame, though a group of representatives submitted a bill yesterday that could potentially erase the doubt.
The hearing started with speaking to David Solomon, the CEO of Goldman Sachs. He clarified that their company, so far, is not planning to launch a cryptocurrency desk. He said that cryptocurrency has yet to be classified as a currency, which appears to be part of the reason that they have abstained.
The attention was shifted to Dimon, as the representative at Capitol Hill pointed out that his former stance on cryptocurrency was that it was “not a real thing” in 2017. When questioned why Dimon had the change of heart, Dimon explained that his company believes that blockchain “will work over time,” considering all of the trials and testing it has undergone and continues to go through.
He continued, saying that his suggestion that cryptocurrency isn’t real is based on the fact that these assets are “not supported by anything,” saying that the value is entirely based on how much the next person is willing to shell out for it. With the JPM Coin, Dimon explains that the token is
“supported by a deposit at JPMorgan.”
Dimon focused on the speed and ease of use with the tokens, though the ultimate payments would be fulfilled with the user’s funds at the bank. The blockchain was highly praised for its data collection, allowing any participant on the ledger to see the same information as another person in real time.
Protection of consumers was another crucial concern since there are no regulations that discuss limitations on being a custodian. Speaking on the hurdles in this area, Charles Scarf of the Bank of New York Mellon said that anti-money laundering has been the greatest concern, which has been a similar problem for jurisdictions around the world as well.
Dimon has been the CEO for JPMorgan Chase since the end of 2006 and has been praised as ”one of the smartest bankers we’ve got” by former president Barack Obama.