JPMorgan CEO Jamie Dimon has called for stricter regulation of cryptocurrencies and the latest financial technologies, as they can pose a serious threat to the banking sector.
Jamie Dimon has long been considered a cryptocurrency skeptic – back in 2017, he called Bitcoin a “scam.” However, as the cryptocurrency industry develops, more and more traditional investors are showing interest in digital assets. Therefore, Daimon believes that cryptocurrencies should have a clear legal status.
Daimon urged to develop regulation of this industry as soon as possible, since certain problems are already emerging, which only “grow” over time. It’s about the rise of shadow banking, misuse of financial data, and cybersecurity risks. In addition, the ethical use of artificial intelligence (AI) and the effective regulation of payment systems need to be explored more deeply.
The JPMorgan CEO noted the difficulty of regulating cryptocurrencies in the United States, as many government agencies have different views on the industry. For example, the US Securities and Exchange Commission (SEC) determines whether cryptocurrencies are securities. And only if any crypto asset does not fall into this category, the Commodity Futures Trading Commission (CFTC) can authorize the emergence of futures for this cryptocurrency. Therefore, Daimon recommended that regulators decide now what they would like to include in the regulatory system.
He stated that traditional banks are under threat from firms operating in the fintech and cryptocurrency industries. Amid the pandemic, banks and cryptocurrency startups have begun waging a battle for digital supremacy. Therefore, JPMorgan is forced to “aggressively adapt” to the “challenges” of the latest technologies. For example, in May last year, the bank began serving cryptocurrency exchanges, and recently JPMorgan Chase co-chairman Daniel Pinto said that the bank would have to work with bitcoin if it is in demand among JPMorgan’s clients.
According to JPMorgan estimates, there are currently about 58 fintech companies with a market capitalization of more than $ 1 billion. Daimon added that banks need to strengthen their position if they want to compete with the latest financial technologies, which are developing rapidly, otherwise there is a risk of “becoming a thing of the past. “. This requires clear regulation to ensure a “level playing field” for all.
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