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JPMorgan CEO praises Blockchain, DeFi and says bank won’t be left behind

Jamie Dimon, CEO of investment bank giant JPMorgan, praised blockchain technology and Decentralized Finance (or DeFi, for short) in a letter sent to shareholders on Monday (4).

JPMorgan CEO praises Blockchain, DeFi and says bank won't be left behind

JPMorgan CEO praises Blockchain, DeFi and says bank won’t be left behind

“Decentralized finance and blockchain are real, new technologies that can be implemented both publicly and privately, licensed or otherwise,” Dimon said, before adding that JPMorgan is “at the forefront” of these innovations.

“We use a blockchain network called Liink to enable banks to share complex information, and we also use a blockchain to move tokenized U.S. dollar deposits with JPM Coin,” he explained.

JPM Coin was created in February 2019 as a dollar-backed stablecoin for use by large companies. Liink, on the other hand, was launched in 2017 and so far, more than 400 financial institutions have signed up to participate in the blockchain.

The JPMorgan CEO added that the company believes that there are “many uses where a blockchain can replace or improve contracts, data governance, and other enhancements.”

He added a caveat to his praise by stating that, for some purposes, blockchain technology is “currently too expensive or too slow to implement.”

These comments represent a significant shift from Dimon’s general views on cryptocurrencies, always focused on his negative perception of bitcoin (BTC) – the industry’s top cryptocurrency.

In November 2020, during a virtual conference held by The New York Times, Dimon had said that he had no interest in bitcoin.

“It’s not my thing,” said the CEO of JPMorgan at the time. However, he had described blockchain technology as a “fundamental” development in the way money is managed.

Despite his impressions of blockchain technology, his views on Bitcoin remained critical.

As of May 2021, Dimon remained skeptical of bitcoin and reiterated that he had no real interest in the cryptocurrency. However, he admitted that JPMorgan’s clients had an interest in the main cryptocurrency on the market.

“I personally think bitcoin is worthless,” Dimon said at the International Institute of Finance (or IIF) annual meeting in October 2021.

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