JP Morgan’s Jamie Dimon: Facebook’s Crypto Isn’t a Short-Term Concern
Jamie Dimon, CEO of global financial services firm JPMorgan Chase, argued that Facebook’s cryptocurrency project Libra does not pose a threat in the foreseeable future.
In an analysts call Tuesday, first reported by CNBC, Dimon appeared to suggest that it was too early to speculate on how the effort, advertised as a global currency for the unbanked, would impact his company or its outlook. JP Morgan is the leading bank in terms of U.S. retail deposits, according to its most recent annual report.
“We’re going to be talking about Libra three years from now. I wouldn’t spend too much time on it,” Dimon said when asked about Facebook’s entrance into the financial sector through cryptocurrency.
Dimon continued saying that any new effort will have to comply with the industry’s Anti-Money Laundering provisions. Dimon said:
“We don’t mind competition. The request is always going to be the same: We want a level playing field. And governments are going to insist that people who hold money or move money all live according to rules where they have the right controls in place; no-one wants to aid and abet terrorism or criminal activities.”
Dimon’s statements come on the heels of a press conference from the United States Treasury Secretary Steven Mnuchin, who spoke about the use of cryptocurrency to finance illicit activity and the role of regulations with respect to crypto-dealing organizations. Mnuchin said:
“Cryptocurrencies such as Bitcoin [BTC] have been exploited to support billions of dollars of illicit activity, like cybercrime, tax evasion, extortion, randomware, illicit drugs, human trafficking […] This is indeed a national security issue.”
JPMorgan itself is reportedly expecting to pilot its own digital token dubbed JPM Coin by the end of 2019. Umar Farooq, head of digital treasury services and blockchain at JPMorgan, stated that the bank’s stablecoin has the potential to enable instant delivery of bonds via blockchain.