Umar Farouk, head of digital assets at investment bank JPMorgan, believes that most of the cryptocurrencies on the market are “garbage” because they have no real use.
During a Green Shoots workshop held in Singapore, Umar Farroq noted that regulation has not yet been able to catch up with the fast-growing cryptocurrency industry. This is holding back many traditional financial institutions from entering the crypto market. At the same time, most of the digital assets remain useless:
“Most of the cryptocurrencies remain “garbage”. I mean, with the exception of a few dozen crypto assets, the rest are either just created for quantity or will disappear altogether in the future. I don’t think there are many use cases for cryptocurrencies yet. Regulation is not keeping up with the industry, and the financial industry is lagging behind the crypto space.”
Farooq said that the cryptocurrency industry has not yet reached the level of development to be used for “large and serious transactions” between traditional financial institutions, or, for example, for the tokenization of cash deposits.
“Cryptocurrencies, blockchain and Web3 need to mature. Then we can use them, but it’s too early now. Most of the funds invested in Web3 and the current infrastructure are speculative investments,” said a JPMorgan top manager.
In early August, JPMorgan analysts said that the cryptocurrency market had bottomed out and was ready to rise.
Source: Bits
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