JPMorgan boss says cryptocurrencies need to be dealt with quickly

Jamie Dimon

We have known for a while that JPMorgan boss has had a bone to pick with cryptocurrencies for a while now. Even as the bank itself is warming up to the concept and the blockchain technology.

Jamie Dimon is of the view that cryptocurrencies, shadow banking, and even FinTech companies are emerging issues for the old guard — the traditional financial institutions. He believes that banks are playing an increasingly smaller role in the financial system due to the advent of these technologies.

And he reiterated these views in a comprehensive letter to JPMorgan shareholders about the company’s accomplished goals and future concerns.

Dimon noted that financial incumbents are bogged down in the past, and a concentration needs to be dedicated to the future.

He highlighted that the US banks have grown much smaller in comparison to shadow banks, FinTech, and the magnitude of Big Tech companies. He thinks that it is more important for payment transactions to flow through the US banking system than these alternatives.

The letter insists:

“Transactions made by well-controlled, well-supervised, and well-capitalized banks may be less risky to the system than those transactions that are pushed into the shadows.”

Despite these concerns, he recognizes the need for competition in the financial world.

But he still believes that there are serious emerging issues that need to be dealt with, and soon. And these include cryptocurrencies and the regulation surrounding these digital assets. Not only are these classical institutions slow in dealing with the past, they are also distracted from dealing with the future.

Of course, Dimon is infamous for disliking cryptocurrencies and Bitcoin in the past, and even called the leading crypto asset a fraud a few years ago.

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