Goldman Sacs And JP Morgan Chase Finally Concede To Crypto-Currencies (#GotBitcoin?)
JPMorgan CEO Dimon Says Crypto Companies ‘Want To Eat Our Lunch’ Goldman Sacs And JP Morgan Chase Finally Concede To Crypto-Currencies (#GotBitcoin?)
JPMorgan Chase CEO Jamie Dimon indicated in a recent interview with Yahoo Finance that he had not spoken with Facebook about the development of Libra.
“But it’s very possible someone in the company did,” Dimon said.
“Blockchain is real,” he said, citing his company’s foray into the space with JPM Coin blockchain. “And I think competition is real.”
For Dimon, cryptocurrencies bring disruption to the banking industry because they provide similar services that banks traditionally provided like money transmission, clearinghouse activity, and real-time payments – though he adds, “It’s not an existential threat.”
“We’re going to have competitors, whether its a cryptocurrency competitor or another FinTech competitor. We’re going to have competitors.”
“I tell our people, don’t guess, you know they’re there, you know they’re coming, you know they want to eat our lunch. Assume it.”
Whether it’s a bank or a crypto service startup, Dimon said there are serious issues regarding the future of money. He believes some of these are caused by the government, specifically in determining whether they will be subject to banking regulations, KYC, the bank secrecy act, or anti-money laundering rules.
Sympathetic to the crypto industry’s desire to serve their clients, Dimon also said he’d “want to be able to serve their clients.”
“I always look at these [blockchain] systems like we’d like to do some of it too, ourselves.”
Goldman Sachs ‘Looking at Potential’ of Creating Virtual Currency, CEO Reveals
Goldman Sachs is performing “extensive research” on tokenization, the group’s chief executive told France’s Les Echos newspaper on June 27.
David Solomon said he believes global payment systems are heading in the direction of stablecoins — cryptocurrencies pegged to fiat assets such as the U.S. dollar.
Although he stopped short of confirming whether Goldman Sachs has had discussions with Facebook about its upcoming libra cryptocurrency and Calibra wallet, Solomon said his corporation finds the concept “interesting.”
When asked whether Goldman Sachs will follow JPMorgan Chase in launching its own virtual currency, Solomon said:
“Assume that all major financial institutions around the world are looking at the potential of tokenization, stablecoins and frictionless payments.”
Elsewhere in the interview, Solomon predicted that regulations will change in response to virtual currencies — but said he doesn’t think new entrants in the cryptosphere will force banks to close. He added:
“Admittedly, they will have to evolve, because the trades linked to the payment flows will become less profitable. But there are many other reasons why banks must remain innovative, otherwise they will disappear.”
Solomon also suggested that tech giants such as Facebook would like to avoid the regulatory constraints that banks face, making it more likely that they would try to enter into partnerships than become financial institutions themselves.
Earlier this week, reports suggested that JPMorgan Chase is set to begin piloting its own cryptocurrency by the end of this year.
Back in April, Solomon categorically denied that Goldman Sachs ever had plans to open a crypto trading desk during a hearing before the United States House of Representatives Financial Services Committee. Goldman Sacs And JP, Goldman Sacs And JP