Wednesday 30 November 2022
Home / none / JPMorgan’s CEO feels threatened by disruption in payment systems: Kevin O’Leary

JPMorgan’s CEO feels threatened by disruption in payment systems: Kevin O’Leary

JPMorgan Chase's CEO Jamie Dimon feels threatened by how the crypto space is disrupting the payment systems, stated Shark Tank host and multi-millionaire venture capitalist Kevin O’Leary speaking at a Converge22 panel on Sept. 28.

O'Leary made his remarks after Dimon declared himself as a “major skeptic” on “crypto tokens, which you call currency, like Bitcoin,” referring to them as “decentralized Ponzi schemes” in his testimony to the United States Congress last week.

O'Leary explained that friction is one of the major problems in the traditional financial system and that it's how banks profit on transaction fees, adding that stablecoins could lead to a reduction in fees throughout the world. He stated:

“This isn't about speculation on asset price. This is about reducing the fees of how the world's economies work. More transparent, more productive, completely auditable, regulated, but less expensive. So, does Jamie Dimon feel threatened? You are damn right he does. That is a big part of how he makes money.”

Regarding the regulatory environment in the U.S., the venture capitalist explained that sovereign wealth and pension funds are waiting for regulation before adding digital assets to their portfolios, noting that:

“If you are a sovereign wealth fund or a country that is oil rich, perhaps you are generating a quarter of $1,000,000 in the 12 hours. The only place on earth you can plot that is in the S&P. The only way you can do that is to be compliant with the SEC rules. They are never going to make a move against the SEC in any way until these rules are determined.”

According to O'Leary, a regulatory shift in the U.S. approach to digital assets would lead to a 10% appreciation for all crypto assets overnight. U.S. lawmakers are working on a bill to regulate stablecoins that could be approved by year's end.

Stablecoins are a class of cryptocurrencies that attempt to offer investors price stability, either by being backed by specific assets (such as the U.S. dollar) or using algorithms to adjust their supply based on demand.

Original Article

About Jude Savage

Check Also

Singapore’s Temasek sees ‘reputational damage’ due to FTX, official says

Singapore government-owned investment firm Temasek has suffered a lot more than just financial losses due to investing in FTX, according to Deputy Prime Minister Lawrence Wong. Wong, who is also the finance minister, believes that Temasek’s $275 million investment in FTX has caused significant damage to the company’s reputation. The official addressed the growing criticism over Temasek’s FTX exposure at a parliament meeting on Nov. 27, according to a report by the South China Morning Post. The prime minister emphasized that the collapse of FTX was a result of a “very badly managed company” as well as possible fraud and misappropriation of user funds. “What happened with FTX, therefore, has caused not only financial loss to Temasek but also reputational damage,” the official said, adding that Temasek has launched an internal investment review to improve processes and draw lessons for the future. Wong stressed that investments by other major institutional investors like BlackRock and Seq..

Leave a Reply

Your email address will not be published. Required fields are marked *