Jamie Dimon, CEO of JP Morgan Chase, has said he does not expect Facebook's scheduled Libra cryptocurrency to have a short-term impact on the bank.
In an analyst calling Tuesday, first reported by CNBC, Dimon seemed to suggest that it was too early to wonder how the effort, announced as a global currency for the unbanked, would affect the company or its views. JP Morgan is the leading bank for US deposits, according to its latest annual report.
"We're going to talk about Libra three years from now. I didn't want to spend too much time on it," Dimon said as he was asked about Facebook's entry into the financial sector through cryptography.
Managing Director added:
"To put it in perspective, we talked about blockchain for seven years, and very little has happened."
In previous interviews, Dimon noted that cryptocurrency companies can compete with older banks. Nevertheless, he believes that regulations will be a factor in how such technologies can become widespread to the public, potentially delaying their timelines.
"Governments must insist that people who keep money or move money live all according to rules where they have the proper controls in place; Nobody wants to help and remedy terrorism or criminal activities," Dimon said.
Facebook planned to debut the stable supported crypto competition in 2020, but has since come out to say it will not offer the digital currency until all regulatory considerations have been addressed.
"We don't mind competition," Dimon said. "The request will always be the same: We want steady competition.
JPMorgan proposed his own crypto competition, JPM Coin, in February to be used internally to speed up the transactions." The technology is very good, but it takes time when it comes to licensing and approval. It must be explained, says manager Umar Farooq before a trial period begins.
David Marcus, the leading developer of Facebook's blocks, has said that Libra is not "bank account replacement". in a Senate Bank Committee's hearing on the crypto course yesterday. Another day of testimony is now underway.
Jamie Dimon photo with news from NYTimes Dealbook