Cryptocurrency industry needs banks to survive - JP Morgan
|Traditional financial institutions should be regarded as partners, not rivals to cryptocurrency market, according to the head of e-commerce department in JPMorgan Chase Ron Karpovich.
Speaking in the interview with CNBC, he said that the two industries do not need to compete, but rather work together. These comments came just a month after the bank announced the launch of JPM Coin that will function as a stable coin to facilitate J.P. Morgan’s internal payment network for clients.
Karpovich believes that cryptocurrency companies will have to use traditional banking services to move funds around - even if they don’t want to admit it.
“Ultimately behind the scenes, they are going to have to use a bank to move funds. There’s more partnership instead of competition in that space. When it comes to margins and capabilities — payments is never something that grows in margin, nobody wants to pay for a payment. That’s one of the hardest parts of this process: you have limited resources in the capability to sell, so you need highly efficient and large players,” he said
He also mentioned that blockchain may be used to improve the existing payment infrastructure, make payments faster and cheaper.
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