The year 2019 has been declared as the most crucial year in cryptocurrency’s history as its adoption on a large scale is witnessed. Many financial institutions deployed Blockchain technology in their operations. Some big financial firms that were against the cryptocurrency in the past are now admitting crypto’s potential.
Largest Bank of America
The American multinational investment bank JP Morgan changed his stance over the cryptocurrency in recent years. The CEO’s harsh words for Bitcoin are replaced by a positive attitude for the virtual currency.
JP Morgan’s view about digital currency is very crucial for crypto adoption as JP Morgan Chase & Co is the largest bank in the US and the sixth-largest bank in the world.
The Chief Executive of the bank Jamie Dimon was a fan of Blockchain technology from the start but not of cryptocurrency. But now, he gives remarks about it in good words and the bank’s new report about digital currency confirms the CEO’s positive response.
Bitcoin ‘’a fraud’’
On 12 September 2017, Bloomberg reported that Dimon called bitcoin ‘’a fraud’’. He went on passing very harsh words and said Bitcoin was ‘’ worse than tulip bulbs’’. This showed how badly he viewed bitcoin as an asset.
‘’If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than U.S. dollars. So there may be a market for that, but it’d be a limited market.’’
With the start of 2018, he changed his view about bitcoin and also praised Blockchain technology. He showed his belief in Blockchain and said, ‘’ The blockchain is real. You can have crypto yen and dollars and stuff like that. ICO’s you have to look at individually.’’
In January 2019, the bank took a very bold step and created its stablecoin called ‘JPM Coin’. According to the CNBC‘s report, it was ‘’ a digital token that will be used to instantly settle transactions between clients of its wholesale payments business.’’
Report by Global Research
The Global Research team of JB Morgan published its annual report on Feb.21. It seems that the bank is planning to offer blockchain and crypto services to customers as the title of the report ‘Blockchain, digital currency and cryptocurrency: Moving into the mainstream?’ shows.
According to the report, blockchain is making its place in the financial institutions and also helping in revolutionizing the payment system. As the report reads:
‘’While blockchain technology has not yet emerged into the mainstream, it has moved beyond experimentation and use in payments, with stock exchanges embracing the efficiency around settlement/clearing and collateral management.’’
Similarly, the cryptocurrency is also taken into account that can ‘’ raise the efficiency of a multi-asset Equity and FICC portfolio.’’ Per the report:
‘’crypto might serve some retail investors with a small asset base as one of several hedge instruments.’’