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JP Morgan Accepts Cryptocurrency
Jamie Dimon, CEO of JP Morgan has established a history of criticism for bitcoin dating back to 2014. So Mr. Dimon has actually come a long way considering that JP Morgan just accepted Coinbase and Gemini as clients. One may ask why these exchanges would want to bank with JP Morgan over other banking institutions. In 2019, JP Morgan launched their own currency that represents the digital US dollar. The aim is to improve payments by upgrading the underlying infrastructure. It is not surprising that JP Morgan has attracted the attention of Crypto FinTech companies such as Coinbase and Gemini.
Jamie Dimon’s History of Criticism
It is entertaining to observe the evolution of thought of the CEO of a major American bank. Jamie Dimon’s history of criticism adds credence to the phrase “if you can’t beat them, join them”. Mr Dimon’s critique began in 2014, calling bitcoin a “terrible store of value”. To his credit, bitcoin is highly volatile, both positively and negatively. In 2015, Jamie predicted that bitcoin will one day face a crackdown if the cryptocurrency market ever gets large enough. This makes one wonder, how large is too large? As of the time of writing, the cryptocurrency market approaches $250 billion dollars.
2016 saw the launch of JP Morgan’s own blockchain platform Quorum. The platform is intending to be an enterprise version of the popular blockchain platform Ethereum. Jamie Dimon’s words began heating up in 2017, alongside the cryptocurrency price bubble. After calling bitcoin a fraud, Mr Dimon took a vow of silence, refusing to discuss the topic any further. The next couple of years were spent doubling back and reversing some of the statements that were made, replacing them with pro blockchain sentiments. Fast forward to present day. JP Morgan not only has their own blockchain platform, but their own cryptocurrency, and portfolio of high volume cryptocurrency exchanges.
JP Morgan is Pro Blockchain
A statement released by JP Morgan in 2019 indicates that the major bank is very eager to build the future of finance on blockchain technology.
“We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated”
Many believe that blockchain is the remedy to the aging banking infrastructure that is quickly becoming obsolete. JP Morgan should then be recognized for their willingness and eagerness to trudge into uncomfortable territory.
A Cohesive Future: Cryptocurrency and Banks Work Together
We as a society often are quick to demonize public figures for things they’ve said in the past. There is a tendency to hold these people accountable for a point of view they no longer hold. In reality, observing people’s most recent actions is the best way to determine whether or not an individual, organization, or company has shifted their outlook. It does in fact look like JP Morgan is trending towards being a crypto friendly bank. The opening of accounts for Gemini and Coinbase, alongside the blockchain based JP Morgan coin certainly indicates that JP Morgan accepts cryptocurrency.
