Speaking during an extensive interview with CNBC News channel, Daniel Pinto- co-president at JPMorgan revealed that the company is currently looking at the cryptocurrencies space citing that the technology would play a significant role in the company moving forward.
The dilemma
When asked whether cryptocurrencies are another opportunity for the company given its competitors are already fostering bitcoin ideologies and preparing to get more involved in trading with digital currencies, this is what he said “We are looking into that space. I have no doubt that in one way or another; the technology will play a role. [Regarding bitcoin], you cannot have something where the business proposition is to be anonymous and to be the currency for unknown activities. The tokenization of the economy, for me, is real. Cryptocurrencies are real but not in the current form. If we need to clear futures of bitcoin, can we do it? Yes. Have we done it? No. ”
Misconceptions and critics
Bitcoin, as it stands, is not an anonymous entry in the market, it, however, suffers from a lot of criticism especially from those whose who are not for its concept and ideology. This is one of the reasons why much as JPMorgan may begin clearing bitcoin futures for its brokerage clients, it has hitherto refused to do despite the rise in trade volumes for these products.
For instance, Jamie Dimon (JPMorgan’s CEO) has for a very long time been one of bitcoin’s most strident critics. Speaking during its annual report dated February 27th, the firm under the leadership of Dimon also admitted that blockchain technology and cryptocurrencies could disrupt banks.
Breakthrough
The company has however had to come to terms in the recent past and has been seen to make bold slow but gradual steps towards this innovation. Dimon who was the greatest critic to the move has noticeably been silent on the matter. This is after a resolution he made while Davos, Switzerland for the World Economic Forum. “I think you all have said enough, I am not going to say anymore,” he alluded. Therefore the revelation by Pinto only explains that there is light at the end of the tunnel for JPMorgan to venture into the cryptocurrencies world. Pinto is viewed as a likely successor to the 62-year old CEO Jamie Dimon along with him co-president Gordon Smith despite the current executive not announcing any intentions of stepping down.
