Jamie Dimon, CEO of the Global Banking Giant JPMorgan (JPM)He said that the bank plans to get more involved in Stablecoins, even when it questioned its practical utility compared to traditional payments.
“We are going to participate in JPMorgan Depositcoin and Stablecoins to understand it, to be good in that,” Dimon said during the Bank’s winning call. “I think they are real, but I don’t know why you would want a stablecoin instead of just payment.”
His comments were produced as Stablecoins, a subset of cryptocurrency with prices predominantly linked to fiduciary money such as the US dollar, is having an innovative moment in the broader financial system. They are increasingly used as a cheaper and faster alternative for cross -border payments, especially in emerging countries. The stuffed American regulation provides another tail wind for the sector, and the Senate has already approved the genius law and the Chamber with the objective of voting on the proposal this week.
Read more: The Gears Up for Crypto Market Structure Vote on Wednesday, Stablcoins Thursday
Dimon has been a cryptocurrency skeptic for a long time. In spite of that, the bank has been one of the first leaders in tokenization with its private blockchain network Kinexys, previously known as ONYX. The bank now solves $ 2 billion in transactions daily using JPM Coin. It also piloted a deposit token last month, JPMD, on the base network, a block chain built by coinbase that is executed in Ethereum.
Dimon also suggested that financial technology companies, in summary, are using stablecoins and blockchain tools to enter traditional banking. “These guys are very intelligent,” he said during the call. “They are trying to find a way to create bank accounts and enter the payment systems and rewards programs.”
“We have to be aware of that,” he said. “The way to be aware is to be involved.”
For example, the Banking Startup with Dakota cryptography offers cross -border payments in US dollars using Stablecoins in the backend and has raised $ 12.5 million to expand its services to more than 100 countries, Coindesk reported.
