JPMorgan’s CEO, Jamie Dimon, is threatened by the payment disruptions due to the crypto industry. This was said by Kevin O’Leary at the Converge22 panel recently. Even though Jamie’s firm offers Bitcoin as an investment option, he is quite pessimistic about it. His views on crypto are the total opposite of how JPMorgan views it. On the other hand, we have Kevin, who believes that stablecoins are going to reduce payment friction worldwide.
Jamie Dimon is scared of change
In a recent testimony with the US congress, Jamie Dimon called Bitcoin and other cryptocurrencies Ponzi schemes that are decentralized. It’s quite funny because, in that case, his firm is letting their customers invest in such ponzis via their trusts. He doesn’t think that Bitcoin should be called a currency and declared himself a “major skeptic” of the same.
However, Kevin explained in the recent panel that banks charge a lot of transaction fees in every transaction. This is a major problem that every user faces. However, with the advent of stablecoins and other payment methods, the fees could be reduced significantly. Why? Because otherwise, no one would work with banks.
The shark tank judge also said, “This isn’t about speculation on asset price. This is about reducing the fees of how the world’s economies work. More transparent, more productive, completely auditable, regulated, but less expensive.” This change threatens Jamie Dimon because their bank earns money the same way with the hefty fees.
Regulations in the crypto space
Pension funds and many other investment vehicles are waiting for proper regulations before adding crypto to their portfolios. And this is just to stay compliant with the SEC, which is very important. However, it will take a while before the US comes up with guidelines that actually help in the growth of the crypto industry. Kevin believes that if that happens, there will be a 10% increase in the price of crypto assets overnight.
Stablecoin regulation is also coming, which the US authorities are working on. This is very important after what happened with UST and many other stablecoins recently.
What are your thoughts as Kevin O’Leary says that JPMorgan’s CEO is threatened by payment disruptions? And do you think Jamie Dimon is a hypocrite? Let us know in the comments below. And, if you found our content informative, do share it with your family and friends.