Jamie Dimon, CEO of JPMorgan, recognized the value of decentralized finance (defi), and blockchain technologies in Monday’s annual letter to shareholders.
Dimon spoke about his company’s investment in technology.
Blockchain and decentralized finance are real new technologies that can both be used in public and private settings, whether permissioned or otherwise.
The CEO stated that JPMorgan Chase was at the forefront in this innovation. To enable banks to share complex data, we use Liink blockchain. We also use blockchain to move U.S. dollars with JPM Coin.
According to the website, Liink now covers 39 countries. Over 250 leading institutions signed letters of intent to join the Liink network and more than 25 banks around the globe have signed up. According to the global investment bank, Liink was established to help transfer data via custom applications more efficiently.
JPMorgan explained that JPM Coin is a permissioned shared ledger system that acts as a payment rail, deposit account ledger and allows participating J.P. Morgan clients transfer US Dollars that are held on deposit with J.P. Morgan.’ Morgan.
Dimon commented further on blockchain in his letter addressed to shareholders:
We believe that a blockchain can be used to replace or enhance contracts, data ownership, and other enhancements.
He cautioned, however, that it is not currently feasible to deploy the technology for all purposes.
Dimon praises decentralized finance and blockchain technology, but he hasn’t been open to cryptocurrency, even though JPMorgan started offering some crypto products to clients.
was warned by Dimon last November: “Cryptocurrency does not have an intrinsic value… I would be very cautious. He said that bitcoin was useless in October and challenged its limited supply. He advised people to avoid cryptocurrency in May.
A JPMorgan report last week stated that crypto markets have limited upside. The firm did predict that bitcoin’s long-term price would be $150,000 in February. JPMorgan stated that global regulation was essential to allow banks to assist clients with crypto investments.
