The boss of JPMorgan has just said the investment bank is looking into crypto but doesn’t rate bitcoin. Chief executive Daniel Pinto says bitcoin will die either at the hands of regulators or because “people stop believing in it”. Nevertheless he thinks the tokenisation of the economy “is real”, or rather the prospect of it as no projects have started to put that into practice at scale as yet.
Pinto also revealed that although the bank hasn’t bought any bitcoin futures on behalf of clients or on its own account, it has the ability to do so.
Here’s the transcript of the crypto-related part of the interview.
CNBC: Are cryptocurrencies another opportunity for you? Your competitors already help trade bitcoin futures and are preparing to get more involved in trading digital currencies.
Pinto: We are looking into that space. I have no doubt that in one way or another, the technology will play a role. [Regarding bitcoin], you cannot have something where the business proposition is to be anonymous and to be the currency for unknown activities. That will have a very short life, because people will stop believing in it, or the regulators will kill it. I think the concept is valid, you have many central banks looking into. The tokenization of the economy, for me, is real. Cryptocurrencies are real but not in the current form.
If we need to clear futures of bitcoin, can we do it? Yes. Have we done it? No.
The JPMorgan execs who gave up on waiting
Amber Baldet, the former head of JPMorgan blockchain development, has founded a new startup called Clovyr.
“It’s a way to help people think differently about decentralised application design,” Baldet said of the project.
She co-founded Clovyr with Patrick Nielsen, who led the open source aspect of the blockchain work at the bank. Clovyr will be something akin to an app store for decentralised applications.
Baldet has likened the state of blockchain adoption to that of cloud architecture a few years ago, when companies said “great idea but it’s not secure”, so they went and built their own solutions instead, only to find themselves now migrating to AWS, Azure or even Dropbox. She reckons it’s a similar situation with blockchain and as the space matures and hybrid private/public blockchain offering develop, so the companies will come. Baldet envisions Clovyr as providing the enterprise with practical and safe entry points into exploring and hopefully deploying distributed ledger technology.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane