J.P. Morgan CEO: Blockchain and DeFi are not scams

J.P.Morgan CEO Jamie Dimon praised blockchain and decentralized finance not as a scam, but as a real way to make money, stressing that J.P.Morgan is at the forefront of this innovative technology.

Blockchain and Decentralized Finance (DeFi) are still new to many, but established financial institutions have been studying the field for quite some time, and now J.P.Morgan CEO Jamie Dimon is confident enough to speak to investors, pointing out Both technologies are real.

Decentralized finance and blockchain are real, he said in his annual shareholder letter, and the new technology can lead the way in public or private investment, whether it is licensed by the government or not.

J.P.Morgan has indeed spent a lot of effort in the blockchain. They have used the Liink blockchain internally, which can connect complex transaction information with banks and quickly complete authentication. At the same time, they also used the cryptocurrency JPM Coin to peg the US dollar exchange rate for US dollar transfers.

Liink is not only an experimental project, in fact, 39 countries have joined this blockchain network, and 25 large banks have signed up to join this network, just because it can quickly transfer a large number of complex and require security authentication. News. JPM Coin can help their customers save a lot of handling fees when sending money across borders.

“We believe that blockchain can be used in more use cases, improving or replacing existing contracts, data ownership and various other transaction optimizations.” Jamie Dimon said in the letter, but the current problem with blockchain is still procedures. The fee is too expensive or the processing speed is too slow.

Interestingly, J.P. Morgan and Jamie Dimon’s attitude towards cryptocurrencies has shifted dramatically over the past year. In May 2021 Dimon advised investors to stay away from cryptocurrencies; in October last year he called bitcoin “worthless.” But this year, they have launched cryptocurrency-related investment products, and last week, J.P. Morgan even put the long-term price target of Bitcoin at $150,000.

In any case, if cryptocurrencies want to gain the participation of more banks and financial institutions, they must first have a complete regulatory framework and supervision mechanism. Major cryptocurrency exchanges, including Binance, have continuously expressed their willingness to cooperate with supervision, but Most government departments seem to have deliberately slowed down to respond, which also limits the agency’s ability to enter the market.

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