JP Morgan CEO Jamie Dimon is notorious in the crypto community as a long-time critic of Bitcoin, having previously called it a “fraud” and “worse than tulip bulbs.” However, following the release of an executive summary by JP Morgan, many are speculating that Dimon might have no other choice but to warm up to cryptocurrency.
Back in September, Dimon spoke at a bank investor conference in New York and asserted that Bitcoin “won’t end well.” His disdain for crypto was so strong that he threatened JP Morgan traders to stay away from trading in Bitcoin or they would be “fired for being stupid.” Five months later, JP Morgan’s internal report, published on February 8, claims the complete opposite of what its CEO stated. According to the summary, cryptocurrencies have proven that they have what it takes to both survive and flourish in today’s world of finance. The 71-page report states:
“Cryptocurrencies are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks and anonymity, even as the latter is under threat.”
It’s worth noting that, at the time when Dimon originally made his statement, Bitcoin was experiencing unprecedented gains. Bitcoin’s price at the beginning of 2017 was around $800. By September, the price found itself hovering over $4,000. Contrary to Dimon’s prediction, Bitcoin is still here today.
In addition to acknowledging the power of cryptocurrencies, the report recognizes the significant role cryptocurrencies played in helping advance blockchain technology.
“Cryptocurrencies are the face of the innovating maelstrom around blockchain technology that is bringing both massive price volatility and a constant trial-and-error of new products try-outs and failures.”
According to the report, the continual development of blockchain is important because the technology has potential to be applied in spheres outside of finance. In fact, Dimon unexpectedly showed his support for blockchain technology last month. In an interview with Fox Business, Dimon expressed regret for his earlier criticism of Bitcoin, further explaining that “blockchain is real.”
JP Morgan’s executive summary on Bitcoin comes at an interesting time. Earlier this month, the bank barred customers from buying cryptocurrency using credit cards, citing the market’s high volatility as the reason for the ban. Though it may not allow crypto purchases via credit card, the bank hints that cryptocurrencies “could potentially have a role in diversifying one’s global bond and equity portfolio.” All in all, the report suggests JP Morgan has accepted that cryptocurrencies aren’t going away anytime soon.
