Everyone that is following our cryptocurrency news section knows that the executives sitting on top of JPMorgan Chase are not the biggest fans of Bitcoin and take every chance to bash the dominant cryptocurrency.
As the top tier in one of the largest banks in the world, these executives don’t like similar cryptocurrencies too. Even though the bank is also distant on the nascent technology behind crypto which is the blockchain – they now appear to be in fact bullish on it – as long as they are the ones controlling it.
We can best see this from a statement in a recent interview with CNBC’s Squawk Box, where Ron Karpovich (Global Head of eCommerce solutions at JPMorgan Chase) said that the traditional banking system is intertwined with the world right now – and there is no true way around avoiding it. He also added that payments are not the most profitable industry, continuing:
“Ultimately behind the scenes, they [crypto companies] are going to have to use a bank to move funds. There’s more partnership instead of competition in that space… When it comes to margins and capabilities, payments is never something that grows in margin, nobody wants to pay for a payment…so you need highly efficient and large players.”
Karpovich also responded to a question regarding how far the eCommerce industry is from using crypto to facilitating payments. He explained that blockchain – the underlying technology of cryptocurrencies – will be used to facilitate payments behind the scenes. However, he also added that according to him, blockchain won’t have a huge impact on consumers.
“I think ultimately you’ll find that the technology behind the scenes will be blockchain, I don’t know that you’ll notice anything as a consumer in that space. I think that you’ll still continue to use the payment type that you prefer, be that a wallet, a card, or a bank account,” he noted.
When asked about his anti-crypto sentiment – which is somehow shared in the JPMorgan circles – Karpovich said that there is a difference between adopting blockchain and speculating on cryptocurrencies.
“There’s a difference between trading a cryptocurrency that’s in the market that’s ubiquitous, versus using the technology to enhance your payment infrastructure,” he concluded.
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