JPMorgan Chase CEO: Virtual currency will eventually be blocked, blockchain will be used for the US dollar

According to Fortune, JPMorgan Chase CEO Jamie Dimon believes that when virtual currencies such as Bitcoin grow to a certain stage, the government will crack down on them severely.

Jamie Dimon is not bullish on Bitcoin

At the Fortune Global Forum on Wednesday, JPMorgan Chase CEO Jamie Dimon said the market for virtual currencies is not big and that when it grows to a certain stage, it will be stopped by the government. Dimon believes that although Bitcoin has received some lip service in Washington as politicians try to show their support for Silicon Valley innovation, he believes that virtual currencies will eventually face sanctions.

"The virtual currency, what we call Bitcoin vs. the dollar, it will be stopped," Dimon said. "No government is going to support an out-of-bounds, uncontrollable virtual currency. It will never happen."

Still, Dimon said JPMorgan has set up a research group to study blockchain technology for bitcoin transactions.

“Blockchain is like any other technology,” Dimon said. “If it’s economical, effective and secure, then we’ll use it.”

Dimon also added that the loan market may be a good candidate for blockchain applications at present, because the industry involves a lot of paperwork and transactions may take 20 days to complete. In his opinion, in other financial markets, such as stock trading, blockchain may not provide effective improvements.

That being said, Dimon made it clear that Bitcoin, or any other virtual currency, will never be a major competitor to the U.S. dollar. “The technology will be used, it can be used to transmit money, but it will be dollars, not Bitcoin.”

Marc Andreessen’s response

Marc Andreessen, founder of Silicon Valley venture capital firm Andreessen Horowitz, disagrees. He commented on his personal Twitter:

"In fact, my friend Jamie felt the need to say something that would further boost my confidence."

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Original article: http://fortune.com/2015/11/04/jamie-dimon-virtual-currency-bitcoin/
By Stephen Gandel
Compiled by: Satuoxi
Editor: Satuoxi
Source (translation): Babbitt Information