Last Updated on May 16, 2018 by Ope Quadri
Co-President of JPMorgan Chase Jerry Pinto knows that ‘cryptocurrencies are real, but he wants them really evolve to become a viable financial products.
“Cryptocurrencies are real but not in the current form,” Pinto was quoted as saying by CoinTelegraph.
The financial institution has been finding hard to ignore the digital sector since bitcoin boom and the emergence of other digital products, but still rambling with indecision.
Pinto said Wednesday that JPMorgan Chase will “look into” digital assets in the near future, signaling a public declaration on the stance of the bank.
Before, JPMorgan Chase has been sceptical about the cryptocurrencies, but that hasn’t deterred the digital world from growing in number, there has been unstable cryptocurrency value lately. And that’s understandable considering the fact that cryptocurrency trading is a speculative business.
Cryptocurrencies have brighter future
Pinto, who spoke to CNBC believes that cryptocurrencies have brighter future and could play a very important role in the future of finance.
Pinto also said that the digital currencies must evolve in order to become viable financial products, “The tokenization of the economy, for me, is real,” he added.
He’s on the top of the list of candidates likely to succeed Jamie Dimon as Chairman of JPMorgan, when Dimon tenure elapsed.
What’s true position of JPMorgan on cryptocurrency?
JPMorgan hasn’t been firm on its position on cryptocurrency, when the price is favourable, it shows signs of support, when it goes the other way, it keeps silent or distance itself from it.
It’s speculated that the bank has invested heavily in cryptocurrencies, but no one was sure of which of the coins the company bought. Bitcoin, Ripple, Ethereum, Litecoin were speculated as some of the coins it bought.
When the value of bitcoin and other cryptos went down, the current Chairman Jamie Dimon attacked cryptocurrencies, calling people who buy it names like “stupid.”
He also prevailed on the bank’s top echelon and took a harsh decision, barring customers from purchasing digital currencies using its credit cards.
Some of the bank’s top excos, including Dimon have spoken about blockchain technology benefits.
JPMorgan Chase and Blockchain Technology
It has been reported early this month that the bank was seeking a patent for using blockchain to facilitate and reconcile transactions.
JPMorgan’s application was reported to be before the U.S. Patent and Trademark Office October, 2017, outlining an interbank payment system driven by peer-to-peer technology, it pointed out that distributed ledgers would provide “a unique system for recording transactions and storing data.”
The Hacked quoted part of the application as follows:
“In one embodiment, a method for processing network payments using a distributed ledger may include: (1) a payment originator initiating a payment instruction to a payment beneficiary;
(2) a payment originator bank posting and committing the payment instruction to a distributed ledger on a peer-to-peer network;
(3) the payment beneficiary bank posting and committing the payment instruction to the distributed ledger on a peer-to-peer network; and
(4) the payment originator bank validating and processing the payment through a payment originator bank internal system and debiting an originator account.”
JPMorgan Chase isn’t the only financial institution showing interest in cryptocurrency. Already Goldman Sachs is doing great in the cryptocurrency market, others too are still coming on board.