Jamie Dimon, CEO of JPMorgan Chase, stated that the bank is "probably one of the bigger users of blockchain" during an interview on Tuesday at the Financial Markets Quality Conference.
What Happened: Dimon, who has been skeptical of cryptocurrencies, emphasized that JPMorgan is an "actual user" of blockchain technology. He described blockchain as "just a database" and highlighted its utility in sharing data and building trust between banks and customers, reported The Block.
"We're probably one of the bigger users of blockchain, an actual user, like a real user," Dimon said, according to the report.
Despite his skepticism towards cryptocurrencies, Dimon acknowledged the effectiveness of blockchain technology. He reiterated his view by calling cryptocurrency a "pet rock" but praised blockchain as a "great way to share data."
JPMorgan's blockchain network, Onyx, was launched in 2020 and is based on a forked version of Ethereum (CRYPTO: ETH). It supports wholesale payments, peer-to-peer lending, and cross-border transactions. The network has processed over $700 billion worth of transactions and includes firms like Goldman Sachs, DBS Bank, and BNP Paribas among its users.
Dimon has consistently dismissed cryptocurrencies while advocating for blockchain. At Davos in 2021, he labeled Bitcoin (CRYPTO: BTC) a "hyped-up fraud" but acknowledged blockchain's efficiency in moving money. He reiterated on Tuesday that blockchain has not advanced as much as artificial intelligence over the past 12 years.
Dimon, who once suggested banning crypto, is reportedly a candidate for Treasury Secretary if Donald Trump wins reelection. He mentioned that while Chase might not lend against cryptocurrencies, clients still have access to some crypto services.
Why It Matters: Dimon's recent comments come amid a backdrop of significant shifts in the cryptocurrency landscape.
Dimon reiterated his harsh stance on Bitcoin, recalling his statement from seven years ago, in which he said he would "fire in a second" any JPMorgan trader caught trading Bitcoin. Despite this, JPMorgan has investments in exchange-traded funds tied to Bitcoin, such as the Grayscale Bitcoin Trust (NYSE:GBTC).
Additionally, Trump and his family have launched a cryptocurrency project called World Liberty Financial, signaling a dramatic shift from the former President's previous stance on digital currencies.
The skepticism towards Bitcoin is not isolated to Dimon. Renowned economist Peter Schiff and tech billionaire Peter Thiel have also voiced doubts about Bitcoin's potential. Schiff stated in August that he hasn't seen any convincing argument to embrace Bitcoin, while Thiel expressed skepticism about Bitcoin's future growth.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote