JPMorgan CEO remains skeptical of cryptocurrencies

     JPMorgan Chase CEO Jamie Dimon has stated his concerns about Bitcoin and blockchain technology, and emphasized his views in recent testimony. JPMorgan Chase is currently working with other large investment banks such as UBS and Credit Suisse Group to build a more stable blockchain architecture for use in financial enterprises.

     During his 40-minute question-and-answer session at the Barclays Global Financial Services Conference in New York, Dimon dispelled reports that JPMorgan was looking for ways to exit the custody and cash management business as it explores blockchain technology.

JPMorgan Chase and Blockchain Technology

     Dimon claimed that these rumors have been going on for a long time in an effort to make JPMorgan Chase uncompetitive. He directed some of his comments at the same conference to competing banks, many of which were based on recent changes in the company's leadership.

     The JPMorgan Chase boss confirmed that the bank will join other financial institutions in introducing blockchain technology applications. According to American Banker, Dimon said the bank is trying to figure out whether decentralized electronic billing can be more efficient than long-standing players such as the Depository Trust & Clearing Corporation.

     Dimon shared that they have met with Blythe Masters, CEO of Digital Asset Holdings and former JPMorgan Chase executive, as well as other blockchain technology companies. On a more cautious note, he added that while the systems being developed could prove more efficient, they need to be secure first.

Dimon, who previously called Bitcoin a “terrible store of value,” has maintained his skeptical stance on cryptocurrencies, reiterating that Bitcoin cannot succeed as a currency because governments will not tolerate a currency they cannot control, and has decided to shift his focus to blockchain technology and its potential to become a mainstream line of thought for companies and governments.