Friday, September 30, 2022

Throughout JP Morgan Chase’s This autumn 2020 earnings name, CEO Jamie Dimon and CFO Jennifer Piepszak weighed in on the OCC’s latest approval of banks utilizing stablecoins for funds, in addition to whether or not or not the approval can have any affect on the event of JPM Coin. 

In the course of the question-and-answers portion of the decision, Portales Companions analyst Charles Peabody requested concerning the approval from the OCC for banks to make use of public blockchain networks for funds.

“That guidance enables an offering of stable going on a public blockchain. So that doesn’t impact JPM coin. JPM coin, you should think about as the tokenization of our customer deposits,” responded JPM CFO Jennifer Piepszak, in line with a transcript of the decision.

Nevertheless, she didn’t rule out the potential of a JPM-backed stablecoin if clients confirmed curiosity.

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“So, it’s obviously very early. We will assess use cases and — and customers demand. But — but it’s still too early to see where this goes for us.”

JPM CEO Jamie Dimon was additionally fast to leap in and point out that the bank is “using blockchain for sharing data with banks already and so we are at the forefront of that which is good.”

Debuted in October of 2020, JPM Coin is essentially used on the backend of JPM’s funds programs, serving to to settle almost $6 trillion in funds every day. On the decision, Piepszak additionally described the JPM Coin mission as “tokenizing deposits to make payments easier for client.”

Finally, Dimon appeared to indicate to crypto funds settlement received’t vastly change how JPM operates.

“There is this talk about several banks having digital currencies and stuff like that, right?” Dimon concluded. “[…] So I — I do expect that stuff is coming and it may not change our world that much”

Dimon may be underestimating the affect crypto can have on the funds panorama, nonetheless. 

Paypal, one of many Fintech giants that Dimon talked about by identify as a funds competitor, confirmed that crypto funds can be out there beginning in 2021. The CEO — a former famous skeptic of cryptocurrencies — made it clear that funds will turn out to be an more and more crowded and cutthroat discipline over the following decade:

I count on it to be very, very powerful competitors within the subsequent 10 years. I count on to win. So assist me God.