JP Morgan Chase has been against cryptocurrencies since a very long time. Indeed, JP Morgan CEO, Jamie Dimon, has been quoted several times attacking the cryptocurrency space. But surprisingly, a document circulating the last weeks remarks that cryptocurrencies are a risky investment but that they are here to stay.
JP Morgan Stance on Cryptocurrencies
Several months passed since Jamie Dimon called cryptocurrency investors stupid and warned JP Morgan employees not to trade cryptocurrencies. It seems that now, his bank is accepting that cryptocurrencies will not die, but will stay here for a long period of time.
The interesting fact is that Mr Dimon said that he regrets making negative comments about Bitcoin. JP Morgan’s Chief Executive Officer knows that its bank is working closely with Blockchain technology. It is impossible to be negative about the possibilities that Blockchain allows to develop.
In the document circulating on the web, the bank says that cryptocurrencies are unlikely to disappear. Furthermore, it remarks the importance of Blockchain technology and how it can change the way transactions are processed.
The document reads as follows:
“Cryptocurrencies are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks and anonymity, even as the latter is under threat. The underlying technology for cryptocurrencies could have the greatest application in areas where current payments systems are slow, such as across borders, as payment, reward tokens, or funding systems for other Blockchain innovations and the Internet of Things (IoT), as well as parts of the underground economy.”
Furthermore, the bank keeps explaining that fiat currencies are a better alternative than cryptos. The bank believes that as cryptocurrencies can’t be reliable as a unit of account, they can’t be used to pay for daily goods and services. Merchants that accept cryptocurrencies work with payment processors that allow them to immediately have the money in their bank accounts in a matter of seconds and in their local currency.
Banks Working With Cryptocurrencies
Different banks all over the world are working with cryptocurrencies and blockchain technology. JP Morgan is one of them. Blockchain technology allow banks to send and receive payments in a cheaper and faster way. Even central banks are working with Ripple, one of the most important cryptocurrencies in the market.
Even when banks are warning investors about the risks of investing in cryptocurrencies, the different methods of investing in the market are expanding. At the moment, there are several Blockchain ETFs available. Additionally, the Chicago Mercantile Exchange (CME) and the Chicago Boards Options Exchange (CBOE) are offering the possibility to trade Bitcoin futures.
Mario Draghi, president of the European Central Bank (ECB), has also commented that Banks are seriously thinking in holding bitcoin positions. Due to the increased interest in cryptocurrencies, banks are also thinking about this market as an investment option.
The document mentioned before says about cryptocurrency investments:
“If past returns, volatilities and correlations persist, Cryptocurrencies could potentially have a role in diversifying one’s global bond and equity portfolio. But in our view, that is a big if given the astronomic returns and volatilities of the past few years.”