During JP Morgan Chase’s earnings report for Q4 2020, CEO Jimmy Dimon and CFO Jennifer Pepsak focused on the recent OCC approval of banks using fixed currencies for payments, and whether the approval will affect JPM coin development or not. … …
During a Q&A call, Portales Partners analyst Charles Peabody asked the OCC to allow banks to use public blockchain networks for payment.
This directive ensures permanent display in the public blockchain. So JPM coin is not affected. JPM CFO Jennifer Pepsak replied, according to the transcript of the call, that it is a JPM coin you should consider as a sign of our customers’ deposits.
However, this did not exclude the possibility of a stable currency supported by JPM, if customers show interest.
“So it’s obviously still very early. We will evaluate utility cases and – and customers ask. But – but – but it is too early to say where this will lead. ”
JPM CEO Jimmy Dimon immediately went in and stated that the bank “already uses blockchain to communicate with banks, so we are at the forefront of what is good.”
JPM Coin was first used in October 2020, mainly on the basis of JPM payment systems, and helped make payments worth approximately $ 6 trillion on a daily basis. During the conversation, Pipsak also described the JPM Coin project as a “token deposit to facilitate payments to the client.”
At the end of the day, Dimon seemed to mean that the settlement of cryptocurrency payments had no significant impact on JPM’s business.
“They say many banks have cryptocurrencies and the like, right?” – Damon concluded. “[…] therefore – I expect something to come and maybe not want to change our world much.”
However, Daimon may underestimate the impact of crypto on the payment landscape.
PayPal, one of the fintech giants that Damon has called a payment competitor, has confirmed that cryptocurrency payments will be available from 2021. The CEO – a former cryptocurrency skeptic – made it clear that payments would be increasingly congested. Domain for the next decade:
I expect the competition to be very tough over the next 10 years. I look forward to winning. Help me, Lord.