Jamie Dimon, chairman and CEO of JP Morgan, and no friend of Bitcoin, told the audience at J.P. Morgan Chase’s annual investor day that the bank’s new cryptocurrency could one day be used for retail payments, as reported by CNBC.
Dimon said during a question-and-answer session, “JP Morgan Coin could be internal, could be commercial, it could one day be consumer.”
The banking giant launched the JPM Coin on 14th February, in a bid to increase settlement efficiency within three of its operations for the moment. JPM Coin will primarily focus on international settlements by major corporations, and is aimed at speeding up transactions that currently take a day or more using options such as SWIFT.
Since its launch, JPM Coin has found fans and critics alike. There are those who see it as a sign that big institutions are engaging in the crypto space, while others say the JPM Coin is not a true cryptocurrency, with one calling it an outright “fraud,” a word Dimon used to describe bitcoin.
Cointelegraph added some new comments about it this week: “This week, Bill Barhydt, CEO of cryptocurrency wallet and investing app Abra, suggested that JPMorgan Chase misrepresented their new initiative, stating that it seems more like “a ledger meant for settling trades” than a coin. Barhydt also stated that “if it really is a private blockchain and private coin, I’m guessing it’s a complete waste of time.”
Ripple CEO, Brad Garlinghouse also said that the JPM Coin “misses the point” of cryptocurrency, and indeed some have wondered why JP Morgan didn’t just use Ripple’s XRP for transactions. Garlinghouse also added, ““as predicted, banks are changing their tune on crypto. But this JPM project misses the point — introducing a closed network today is like launching AOL after Netscape’s IPO. Two years later, and bank coins still aren’t the answer.”
Meanwhile, Reddit co-foundrer Alexis Ohanian sees JPM as a positive move and “another indication that there is real innovation happening since speculators have left the sector.”
But will it become a method of payment used by consumers? That’s hard to predict, no matter what Dimon says.