JPMorgan Chase CEO says he is not a skeptic of Blockchain, DeFi and Utility Tokens
On Wednesday (September 21), JPMorgan Chase CEO Jamie Dimon shared his thoughts on blockchain technology in general and cryptocurrencies in particular while testifying before the US Congress.
His comments were made during a hearing (titled “Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks”) of the US House Committee on Financial Services.
At one point during that hearing, Dimon, who was one of the seven “megabank” executives on the witness list, was asked a question by Josh Gottheimer, the US representative for New Jersey’s fifth congressional district since 2017.
Congressman Gottheimer, who sits on the House Financial Services Committee, where he is vice chairman of the Subcommittee on National Security, International Development and Monetary Policy, told the JPMorgan Chase CEO:
“I would like to ask about another topic that I have been very focused on, which is the rapid development of digital assets and related financial technology. I believe that the United States should lead the development of new technologies, such as distributed ledgers and blockchain, and the federal government should provide the absolute necessary for the country to function as a hub of financial innovation. And I have developed legislation to help define eligible stablecoins, knowing that the chairman and ranking member also work with and to choose the right regulator.
“I’ve read that you’re a bit skeptical of some of these new technologies, but what are the biggest things that are keeping you from being more active in space, and do you worry that we’d miss the boat and give other nations like China an opportunity to promote their digital currency and other payment systems that could undermine the US dollar, and I’d like to get some of your thoughts on that.“
Dimon replied:
“So you have to separate blockchain, which is real DeFi, which is real ledgers, you know tokens to do something and deliver information, money, ideas, facilitate smart contracts. That’s one thing. I’m not a skeptic… I’m a big skeptic of crypto-tokens that you call currency like Bitcoin. They are decentralized Ponzi schemes and the show [that] it is good for some is incredible.
“So we’re sitting here in this room talking about a lot of things, but two billion dollars have been lost every year. $30 Billion in Ransomware, AML, Sex Trafficking, Theft. It is dangerous. There won’t be anything wrong with stablecoin right. It is like a properly regulated money market fund.“
On April 4, 2022, Dimon spoke about blockchain technology and decentralized finance (DeFi) in the company’s annual letter to shareholders.
In the “Investments and Acquisitions: Determining the Best Use of Capital and Assessing ROI” section of this report, he stated:
“We now process payments for eight of the top 10 global Big Tech companies (up from three in 10 five years ago), and consistently win business from strong competitors. We continue to bring to market and commercialize innovative products, such as embedded banking; AI-powered fraud checks and forecasts; and account validation and programmable payments on JPM Coin.
“Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private ways, with or without permission. JPMorgan Chase is at the forefront of this innovation. We use a blockchain network called Liink to enable banks to share complex information, and we also use a blockchain to move tokenized US dollar deposits with JPM Coin.
“We believe there are many applications where a blockchain could replace or improve contracts, data ownership and other improvements; however, for some purposes it is too expensive or too slow to be deployed.
“We expect to achieve double-digit market share over time in Payments, as the world’s most innovative bank, as well as the safest and most robust.“
