After analyzing various aspects of cryptocurrency to gain insight on this market and its potential evolution, J.P. Morgan researchers came to the conclusion that cryptocurrencies are “unlikely to disappear” and could easily survive in various forms and shapes.
In an internal report, which is allegedly J.P. Morgan’s executive summary on cryptocurrency, the banking behemoth appears to be optimistic about the future of crypto. According to them, cryptocurrencies are the champions of innovation.
“Cryptocurrencies are the face of the innovating maelstrom around blockchain technology that is bringing both massive price volatility and a constant trial-and-error of new products try-outs and failures.”
Cryptocurrencies Are Here to Stay
In the report, the bank agrees that cryptocurrencies are here for good and it would take a lot for them to just disappear from today’s financial space.
“Cryptocurrencies are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks and anonymity, even as the latter is under threat.”
It goes without saying that the technological advancements that cryptocurrencies have brought us are immeasurable. J.P. Morgan acknowledges that, saying “the underlying technology for cryptocurrencies could have the greatest application in areas where current payment systems are slow, such as across borders, as payment, reward tokens or funding systems for other blockchain innovations and the Internet of Things.”
According to the New York-based bank, blockchain can be applied in not just the financial world, but others as well.
“There is a potential for increased usage of blockchain in…the broader world of TMT, transportation and healthcare but only where any cost efficiencies offset regulatory, technical and security hurdles.”
Contradiction with J.P. Morgan’s Public Position
4 months ago, JPMorgan Chase CEO Jamie Dimon made a bold claim about Bitcoin, calling it a fraud and condemning anyone who bought Bitcoin as “idiots”. At that time, Bitcoin was sitting at a record high of $5,800, more than six times its price tag at the beginning of 2017.
“Who cares about bitcoin? The world economy is so big,” Dimon said, noting that JPMorgan Chase moves about $6 trillion in money around the world every day. He even threatened to fire any JPMorgan traders who traded in the cryptocurrency.
Although Dimon softened the harsh comments about Bitcoin he made at the banking conference in September 2017 in an interview with Fox News last month, the bullish stance that is displayed in the bank’s recent executive report is surprising.
Last week, J.P Morgan was one of the banks to block Bitcoin purchases via credit card, along with Bank of America, Citibank, and others.
FEATURED IMAGE SOURCE: Quartz