JPMorgan’s Intriguing Hot and Cold History with Blockchain and Cryptocurrency
JPMorgan and Crypto Relationship: Stories Beyond Doubt
The crypo wave has been one major thing financial institutions are talking about. Among financial institutions we have so many who failed to accept cryptocurrency, while some have always being at the fore supporting and pledging allegiance to crypto some are doing it a disservice to rather make it appear as something bad in the society.
One of the major companies who have been having a different stance is JPMorgan, in this article, we intend talking about the relationship existing between cryptocurrencies and JP Morgan.
JP Morgan Developed Quorum
Around November 2016, JPMorgan published a paper detailing the development of Quorum, a private blockchain platform built on the Ethereum protocol.
Since JPMorgan is one of the founding member of EEA (Enterprise Ethereum Alliance), it designed and innovated JPMorgan in compliance with the instructions of EEA i.e. to introduce privacy, security and scalability to the Ethereum blockchain.
It was aimed at organizations that wanted to have better control over the use and accessibility of data through blockchain.
Quorum is an innovation unveiled to guard superficial information with the help of the cryptography, while allowing permitted users alone the opportunity to access specific transaction data.
Not long after, JPMorgan and some other banks tested the Quorum blockchain with several participant banks.
JPMorgan Raises Some Doubts On Crypto
JPMorgan has not come out to raise some doubt about cryptos, but their CEP, Jamie Dimon, has raised some doubts on the crypto. DImon said crypto is a fraud, he pledged that if any of his traders is caught dealing in crypto, he would fire him or her because it is against the norms and stupid.
Dimon said “It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed.”
After us skeptics behavior against crypto, the value if Bitcoin went down to $4,106.23. Not long, the price went up in that same September to a record high $8,000.
After a while, JPMorgan said they are no longer processing cryptocurrency purchase with their cards, saying the reason is market volatility. Then it published in January a report that pointed that crypto possesses high risks factors.
In the report, JPMorgan stated that the adoption of crypto is going to disrupt the banking sector by giving banks a tough time to entice customers with their products.
“Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation.”
Begins Devising Crypto Ideas In May 2018
Around May JPMorgan declared it is looking for a leader in the crypto sphere who will help them leade the crypto assets strategy corner. The position was then occupied by Oli Harris, who at present manages the company’s cryptocurrency projects.
The section is to look into the used of blockchain and cryptocurrencies, while at the same time devising ideas that will help JPMorgan.
Jamie Condemned Bitcoin Again in August 2018
After his first criticism, Jamie Dimon came again to show the problems he has with crypto especially Bitcoin. The same august, Harvard Business Review in a conversation with Dimon revealed that JPMorgan is testing the possibility of blockchain technology in diverse areas.
While he did not talk about cryptocurrency, he however showed his commitment towards blockchain technology.
He said: “I probably shouldn’t say any more about cryptocurrency. But it’s not the same as gold or fiat currencies. Those are supported by the law, police, and the courts. They’re not replicable, and there are strictures on them. Blockchain, on the other hand, is real. We’re testing it and will use it for a whole lot of things.”
Change of Stances
It is hard with the two mouths in which JPMorgan is viewing cryptocurrency to say what the organization actually means.
Going by JPMorgan’s CIO Lori Beer statement, one can understand the company’s perception of cryptocurrency. Beer around August said blockchain technology would soon take over financial instruments.
She said: “We are currently following many paths. We invented a blockchain with an open code based on Ethereum. Actual blockchain technology has not yet resolved issues with privacy and scalability that we needed. We are connected to Hyperledger and Enterprise Ethereum Alliance. The application of this technology in business is more important to us than the technology itself. We are looking not only for cost reduction but also for opportunities to develop new products.”
As well, she pointed that JPMorgan is also checking the crypto space, and this says it all.