JPMorgan Chase CEO Jamie Dimon sees decentralized finance (defi) and blockchain as actual, new applied sciences that may be deployed in each personal and public style. He additionally famous that JPMorgan is on the forefront of this innovation.
JPMorgan’s Jamie Dimon Praises Defi and Blockchain
JPMorgan CEO Jamie Dimon acknowledged the benefit of decentralized finance (defi) and blockchain applied sciences in his newest annual letter to shareholders, revealed Monday.
Whereas speaking about his firm’s investments in expertise, Dimon mentioned:
Decentralized finance and blockchain are actual, new applied sciences that may be deployed in each private and non-private style, permissioned or not.
The CEO elaborated: “JPMorgan Chase is on the forefront of this innovation. We use a blockchain community known as Liink to allow banks to share advanced info, and we additionally use a blockchain to maneuver tokenized U.S. greenback deposits with JPM Coin.”
Based on its web site, 39 nations are actually coated throughout the Liink community. Greater than 25 of the world’s main banks have signed as much as take part and over 400 main establishments have signed letters of intent to affix. The worldwide funding financial institution mentioned that it “established Liink to search out extra environment friendly methods to switch knowledge by customized purposes.”
JPMorgan defined that “JPM Coin is a permissioned, shared ledger system that serves as a fee rail and deposit account ledger, enabling taking part J.P. Morgan shoppers to switch US {Dollars} held on deposit with J.P. Morgan.” The coin “facilitates real-time worth motion, serving to to resolve widespread hurdles of conventional cross-border funds,” its web site particulars.
Commenting additional about blockchain in his letter to shareholders, Dimon wrote:
We imagine there are a lot of makes use of the place a blockchain can substitute or enhance contracts, knowledge possession and different enhancements.
Nonetheless, he cautioned that for some functions, “It’s at present too costly or too gradual to be deployed.”
Whereas praising decentralized finance and blockchain applied sciences, Dimon has not warmed as much as cryptocurrency, even after JPMorgan started providing some crypto-related merchandise to shoppers.
Dimon warned in November final 12 months: “Cryptocurrency has no intrinsic worth … I might be very cautious.” In October, he mentioned bitcoin was nugatory and questioned its restricted provide. In Might, he suggested folks to steer clear of cryptocurrency.
Final week, a JPMorgan report said that there’s restricted upside for crypto markets. Nonetheless, in February, the agency predicted that the long-term value of bitcoin would attain $150,000. Nonetheless, JPMorgan mentioned international regulation is urgently wanted for banks to assist shoppers put money into crypto.
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