- JPMorgan’s CEO Jamie Dimon has revealed the bank is one of the biggest users of blockchain technology.
- Dimon argues that blockchain hasn’t made significant advancements in the last 12 years compared to the exponential growth of AI.
- He did state that blockchain helps improve “trust” and “data sharing” between banks and customers.
JP Morgan, one of the leading US investment banks known for giving mixed signals when it comes to crypto, is one of the “biggest” blockchain users”, according to the company’s CEO, Jamie Dimon.
In a surprise to no one, Dimon highlighted the benefits of blockchain technology, which they have used since 2020 through their Onyx blockchain, while bashing the crypto industry and Bitcoin (BTC).
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Just a Database
Dimon went on to say that blockchain is “just a database” that works well in improving trust and data sharing between banks and customers.
“We’re probably one of the bigger users of blockchain, an actual user, like a real user,” Dimon said during an interview at the Financial Markets Quality Conference
If you haven’t heard of it, JP Morgan uses a blockchain-based dataset called Onyx, which is just another fork of Ethereum. It’s a permissioned blockchain used for cross-border transactions and peer-to-peer lending.
They’ve been using it nonstop since it was launched in 2020, having processed over US$1T (AU$1.47T) in transactions and averaging over US$2B (AU$2.9B). They have developed JPM Coin on it, a stablecoin designed for payment transfers between institutional clients. It’s allegedly backed by US dollar reserves.
No Advance in 12 Years
Despite using blockchain and believing it’s a useful tool, Dimon doesn’t believe crypto has made many advancements in the last decade, and compared to artificial intelligence (AI), its achievements are minimal, highlighting the exponential growth AI models have witnessed in the last two years.
We’ve been talking about blockchain for 12 years, not much has happened — it ain’t like AI.
Jamie Dimon, JP Morgan CEO Moreover, he thinks this is a “free country” in which people can decide to access crypto services if they wish, but that doesn’t necessarily mean the firm is willing to lend against crypto.
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Overall, Dimon and JP Morgan remain dismissive of cryptocurrencies. The CEO once labeled Bitcoin a “hyped-up fraud” at the 2021 Davos conference. Most of JP Morgan’s issues with Bitcoin and crypto generally center around regulatory issues, as Dimon often points out the risks of using unregulated digital assets as they could facilitate criminal activity, he claims.
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