CEO of JP Morgan Chase comments on the impact of Libra
|- CEO Jamie Dimon said that he doesn't expect Libra to have a short term impact on the bank.
- JPM coin was proposed in February, expected to speed up transactions internally.
The CEO of JP Morgan Chase, Jamie Dimon stated that he doesn't expect Facebook's upcoming cryptocurrency Libra to have a short-term impact on the bank. He suggested that it was a bit too early to speculate on the effort, advertised as a global currency for the unbanked would affect his firm or its outlook.
When asked about Facebook's entry into the financial sector using cryptocurrency, he said:
“We’re going to be talking about Libra three years from now. I wouldn’t spend too much time on it. “To put it in perspective, we’ve been talking about blockchain for seven years and very little has happened.”
In earlier interviews, Simon had said that crypto companies might compete with legacy banks. However, he believes regulations will be the main factor in how such techniques are brought to the public, potentially delaying their timelines. He said:
“Governments are going to insist that people who hold money or move money all live according to rules where they have the right controls in place; no-one wants to aid and abet terrorism or criminal activities.”
Facebook planned to launch the stablecoin in 2020, but has since come out to say that it will not be offering the digital currency until all the regulatory concerns have been erased. JP Morgan had proposed its own cryptocurrency JPM Coin, which was expected to be used internally to speed up transactions. The lead developer Umar Farooq said:
“The technology is very good, but it takes time in terms of licensing and approval. It must be explained.”
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