Institutional demand has played a critical role in the surge of cryptocurrencies in the past year, with many tech companies and large banks planning to custody virtual currencies.
But despite what many may call a significant victory for the nascent technology, critics still abound, with some openly declaring they cannot support the idea of digital currencies replacing fiat as a medium of exchange.
Jamie Dimon Still Not Intrigued by Bitcoin
One such detractor is JPMorgan Chase’s boss Jamie Dimon who has remained resolute in his criticism of the burgeoning industry.
JP Morgan Chase was once a critic turned supporter as the investment bank prepares to launch a Bitcoin fund in the coming months. But despite what has been a radical shift in mindset, JP Morgan’s CEO Jamie Dimon is still a skeptic of the volatile asset class.
While speaking at The Wall Street Journal CEO Council Summit, the billionaire investor said he isn’t interested in Bitcoin, despite the growing interest from institutions.
Dimon’s firm JPMorgan is working on a Bitcoin custody service due to ongoing client demands, Dimon noted. Beyond this, JPMorgan’s CEO won’t touch the asset class. Despite his skepticism of the influence of crypto, he remains a believer in the power of the blockchain.
Dimon explained that he believes in the real-life use cases for blockchain technology, especially for the financial sector. He revealed that his firm is also leveraging the technology to serve customers.
“But people have to remember that a currency is supported by the taxing authority of a country, the rule of law, a central bank.”
The former board member of the Federal Reserve has repeatedly kicked against the world’s first-ever virtual currency, calling Bitcoin once a “fraud” at a conference organized by news outlet CNBC.
However, Dimon has since said that he regretted his outburst while noting his indifference to the Bitcoin narrative. But he has retained a lukewarm attitude towards the emerging asset class, constantly claiming disinterest and citing volatility as a reason for it not going mainstream.
Nevertheless, JP Morgan has been quite active in the crypto space rolling out its in-house built digital token-styled JPM Coin in 2019. It has since gone on to create a blockchain unit to stay innovative in a fast-changing world.
Wall Street Piling On Crypto
Despite what might seem a bad take on crypto by Dimon, other investment firms have not remained hostile to crypto.
In the last year following Bitcoin’s unprecedented surge, institutional demand has grown following major investment in BTC and the proliferation of other crypto projects.
With decentralized finance (DeFi) radically changing the narrative on legacy-backed services like savings, deposits, borrowing, and lending, more and more banks have started joining the crypto wagon.
One such is investment bank Goldman Sachs reportedly planning to issue a Bitcoin exchange-traded fund (ETF) in the coming months. The proposal, which is still under review with the US Securities and Exchange Commission (SEC), joins a long list of Bitcoin ETF proposals brought forward to the agency.
Banks like US Bank and Bank of New York (BNY) Mellon have shown interest in cryptocurrencies in the past few weeks.
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