{"id":375441,"date":"2019-03-20T22:00:00","date_gmt":"2019-03-20T22:00:00","guid":{"rendered":"https:\/\/ktsl888.com\/?p=375441"},"modified":"2019-03-20T16:43:45","modified_gmt":"2019-03-20T16:43:45","slug":"jpmorgan-executives-flip-bullish-on-crypto-after-jpm-coin-release","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/jpmorgan-executives-flip-bullish-on-crypto-after-jpm-coin-release\/","title":{"rendered":"JPMorgan Executives Flip Bullish on Crypto After JPM Coin Release"},"content":{"rendered":"
It\u2019s no secret that the executives sitting at the top of JPMorgan Chase \u2013 one of the largest banks in the world \u2013 are not the biggest fans of Bitcoin and other similar cryptocurrencies.<\/p>\n
Although the bank\u2019s distain towards the nascent technology initially appeared to be genuine \u2013 and possibly rooted in fear \u2013 it now appears that they are, in fact, bullish on the tech \u2013 as long as they are the ones controlling<\/a> it.<\/p>\n Although one selling point of decentralized cryptocurrencies<\/a> is that they allow individuals to side-step the traditional banking system, and therefore avoid the sheer amount of inefficiency and cost that can be associated with traditional financial systems, one JPMorgan executive is quick to point out that crypto companies still have to use traditional banks.<\/p>\n In a recent interview with CNBC\u2019s Squawk Box<\/a>, Ron Karpovich, the Global Head of eCommerce Solutions at JPMorgan Chase, explained that the traditional banking system<\/a> is so intertwined with the world presently that there is no true way around avoiding it, further adding that payments are not the most profitable industry.<\/p>\n \u201cUltimately behind the scenes, they [crypto companies] are going to have to use a bank to move funds. There\u2019s more partnership instead of competition in that space\u2026 When it comes to margins and capabilities, payments is never something that grows in margin, nobody wants to pay for a payment\u2026so you need highly efficient and large players,\u201d he explained, further affirming the imperative role that big banks play in payments.<\/p><\/blockquote>\n Furthermore, while responding to a question regarding how far the ecommerce industry is from using crypto to facilitate payments, Karpovich explained that he believes blockchain \u2013 the technology that underpins cryptocurrencies \u2013 will be used to facilitate payments behind the scenes, but that it won\u2019t have a huge impact on consumers.<\/p>\n \u201cI think ultimately you\u2019ll find that the technology behind the scenes will be blockchain, I don\u2019t know that you\u2019ll notice anything as a consumer in that space. I think that you\u2019ll still continue to use the payment type that you prefer, be that a wallet, a card, or a bank account,\u201d he noted, adding that the consumer impact will be cheaper fees and slightly quicker transactions.<\/p><\/blockquote>\n The recent news regarding the bank\u2019s foray into the crypto industry with the introduction of their JPM Coin was quite surprising to the crypto community, as Jamie Dimon, the CEO of the bank, is notoriously anti-crypto.<\/p>\n One of the show\u2019s hosts asked Karpovich about his bosses\u2019 anti- crypto sentiment, to which he responded claiming that there is a difference between utilizing blockchain and speculating on cryptocurrencies.<\/p>\n \u201cThere\u2019s a difference between trading a cryptocurrency that\u2019s in the market that\u2019s ubiquitous, versus using the technology to enhance your payment infrastructure,\u201d he explained, avoiding directly confronting Dimon\u2019s previous comments about crypto.<\/p><\/blockquote>\n Although large financial institutions entering the industry is not surprising to many crypto advocates, it is symbolic of a bigger movement of financial institutions recognizing the potential benefits that digital currencies could ultimately have on the existing financial system.<\/p>\n It\u2019s no secret that the executives sitting at the top of JPMorgan Chase \u2013 one of the largest banks in the world \u2013 are not the biggest fans of Bitcoin and other similar cryptocurrencies. Although the bank\u2019s distain towards the nascent technology initially appeared to be genuine \u2013 and possibly rooted in fear \u2013 it now appears that they are, in fact, bullish on the tech \u2013 as long as they are the ones controlling it. JPMorgan Executive: Crypto Innovators Still Have to Use Traditional Banks Although one selling point of decentralized cryptocurrencies is that they allow individuals to side-step the traditional banking system, and therefore avoid the sheer amount of inefficiency and cost that can be associated with traditional financial systems, one JPMorgan executive is quick to point out that crypto companies still have to use traditional banks. In a recent interview with CNBC\u2019s Squawk Box, Ron Karpovich, the Global Head of eCommerce Solutions at JPMorgan Chase, explained that the traditional banking system is so intertwined with the world presently that there is no true way around avoiding it, further adding that payments are not the most profitable industry. \u201cUltimately behind the scenes, they [crypto companies] are going to have to use a bank to move funds. There\u2019s more partnership instead of competition in that space\u2026 When it comes to margins and capabilities, payments is never something that grows in margin, nobody wants to pay for a payment\u2026so you need highly efficient and large players,\u201d he explained, further affirming the imperative role that big banks play in payments. Furthermore, while responding to a question regarding how far the ecommerce industry is from using crypto to facilitate payments, Karpovich explained that he believes blockchain \u2013 the technology that underpins cryptocurrencies \u2013 will be used to facilitate payments behind the scenes, but that it won\u2019t have a huge impact on consumers. \u201cI think ultimately you\u2019ll find that the technology behind the scenes will be blockchain, I don\u2019t know that you\u2019ll notice anything as a consumer in that space. I think that you\u2019ll still continue to use the payment type that you prefer, be that a wallet, a card, or a bank account,\u201d he noted, adding that the consumer impact will be cheaper fees and slightly quicker transactions. What Caused JPMorgan to Flip Bullish on Crypto? The recent news regarding the bank\u2019s foray into the crypto industry with the introduction of their JPM Coin was quite surprising to the crypto community, as Jamie Dimon, the CEO of the bank, is notoriously anti-crypto. One of the show\u2019s hosts asked Karpovich about his bosses\u2019 anti- crypto sentiment, to which he responded claiming that there is a difference between utilizing blockchain and speculating on cryptocurrencies. \u201cThere\u2019s a difference between trading a cryptocurrency that\u2019s in the market that\u2019s ubiquitous, versus using the technology to enhance your payment infrastructure,\u201d he explained, avoiding directly confronting Dimon\u2019s previous comments about crypto. Although large financial institutions entering the industry is not surprising to many crypto advocates, it is symbolic of a bigger movement of financial institutions recognizing the potential benefits that digital currencies could ultimately have on the existing financial system. Featured image from Shutterstock.<\/p>\n","protected":false},"author":499,"featured_media":332550,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,6664,25257,2628],"class_list":["post-375441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-crypto","tag-jpm-coin","tag-jpmorgan"],"acf":[],"yoast_head":"\nJPMorgan Executive: Crypto Innovators Still Have to Use Traditional Banks<\/strong><\/h2>\n
What Caused JPMorgan to Flip Bullish on Crypto?<\/strong><\/h2>\n
Featured image from Shutterstock.<\/pre>\n","protected":false},"excerpt":{"rendered":"