If there is a distinction to be made with respect to individual opinions and how a business should be developed, then it will be the case between JPMorgan Chase and Jamie Dimon.
In his congressional testimony to the United States House Financial Services Committee, Jamie Dimon, the Chief Executive Officer of JPMorgan Chase & Co (NYSE: JPM), cautioned investors from Bitcoin (BTC) and digital currencies as a whole. According to a report by Yahoo Finance, Dimon revealed that his personal disposition about cryptocurrencies will not limit the bank from offering crypto-related services to its customers.
“My own personal advice to people is: stay away from it. That does not mean the clients don’t want it,” Dimon said. “This goes back to how you have to run a business. I don’t smoke marijuana but if you make it nationally legal, I’m not going to stop our people from banking it.”
The unfavorable stance of Jamie Dimon has not changed in the past years, with the JPMorgan Chase boss reiterating earlier this month that he is not a fan of Bitcoin. Among the many concerns, he raised include the lack of regulations guarding the ecosystem in which the emerging digital assets operate.
“It’s nothing like a fiat currency, it’s nothing like gold,” Dimon said. “Buyer beware.” He, however, noted that his positioning is excluding blockchain innovations and stablecoins.
JPMorgan to Prioritize Client’s Requests Despite the Reservation of Jamie Dimon
If there is a distinction to be made with respect to individual opinions and how a business should be developed, then it will be the case between JPMorgan Chase and Jamie Dimon. The executive told Congress on Thursday that he cannot dictate how people spend their money. In his own words:
“I don’t tell people how to spend their money, regardless of how I might personally feel about something.”
This statement implies that customers’ demand on the bank to create an option for them to trade cryptocurrencies will be implemented.
“A lot of our clients are asking, ‘can we help them buy or sell cryptocurrency?’” Dimon said at JPMorgan Chase’s annual shareholder meeting earlier this month. “And we’re investing in that as we speak.”
JPMorgan Chase is not the only multinational financial institution caught in this dilemma. According to an earlier report by Coinspeaker, Swiss multinational investment bank and financial services company UBS Group AG (SWX: UBSG) is also reportedly exploring multiple ways to bring crypto investments to its rich clients. Per the report, the move is being considered to prevent the clients from seeking these services elsewhere.
The volatility of the cryptocurrency industry is particularly the reason for the conservative position being taken by the banks. This scare is justified by seeing the drastic rise and fall in the price of Bitcoin. From a price of less than $10,000 in the year-ago period, the coin rose to a peak of $64,000 back in April, and is currently trading at $36,031.24 according to CoinMarketCap. This kind of price swings is alien to traditional financial service players and many, including Jamie Dimon, has tagged the Bitcoin upsurge as one of the greatest bubbles in history.