Why is JP Morgan changing its ideas regarding bitcoin so much?
JP Morgan Is Becoming Kinder to BTC
Jamie Dimon – the head of the banking organization – has repeatedly referred to bitcoin as a “fraud.” Many customers of crypto exchanges have complained for years that banks and financial institutions like JP Morgan have refused the give them accounts or have denied them access to financial services. Now, as Live Bitcoin News reported recently, the company has brought Coinbase and Gemini – two of the United States’ biggest crypto trading platforms – onboard and vowed to offer its services to both companies.
But why so suddenly? Is it possible that JP Morgan is realizing what most banks are realizing? That crypto is here to stay and there is nothing they can do to stop it, so they might as well hop aboard the crypto asset train and work to ensure its legitimacy?
In a new book entitled “Kings of Crypto,” author Jeff Roberts explains that Jamie Dimon has been hosting secret meetings with Brian Armstrong – the CEO of Coinbase – over the past two years. In a recent interview, he states:
Ironically, Brian Armstrong and Jamie Dimon of J.P. Morgan – who was the biggest enemy of bitcoin and has pissed on it for years – it turns out they were having secret meetings in 2018 at JP Morgan’s headquarters.
There is much speculation about these meetings. It is widely believed by some analysts that Dimon isn’t necessarily interested or intrigued by bitcoin, but is simply working with figures like Armstrong to learn more about competing altcoins, which he thinks are more mainstream or have a stronger chance of making a difference in the financial space.
In 2017, JP Morgan head of digital treasury services explained:
We are supportive of cryptocurrencies as long as they are properly controlled and regulated.
In addition, many have accused Armstrong of being “skeptical” of bitcoin and working to push Ethereum and other cryptocurrencies and blockchains, which he considers to be more valid. Bloomberg editor Joe Weisenthal commented on Twitter:
I’m sure he would deny it, but it’s interesting to me that the CEO of the world’s most prominent bitcoin-related company seems so skeptical of bitcoin.
Moving Towards a Future of Crypto
JP Morgan has, in many ways, been moving slowly towards a cryptocurrency-dominated future given that it gave birth to its own stable currency last year known as JPM Coin. The currency is tied to the U.S. dollar, meaning that it is less volatile than bitcoin or Ethereum and moves in tandem with the fiat currency. The currency is primarily designed to hasten global payments while also reducing transaction costs.
It looks like one enemy of crypto has become an ally. Now, all we need are skeptics like Warren Buffett to join the table and crypto should be all set.