Jamie Dimon, the head of the largest US bank, said he does not approve of cryptocurrencies but is not going to discourage anyone.
May 28, 2021 | AtoZ Markets – Speaking in Congress before the Financial Services Committee of the US House of Representatives, Jamie Dimon, the head of the largest US bank JP Morgan, said that he considers Bitcoin an unreliable asset. However, it will not stop JPMorgan Chase clients from investing in it.
“My personal advice to people is to stay away from cryptocurrencies. But that doesn't mean JPMorgan's clients won't be able to invest in them. I do not smoke marijuana, but if it is allowed nationally, I will not interfere with anyone,” said Daimon.
Jamie Dimon, CEO of the largest US bank, said on Thursday that JPMorgan Chase will offer cryptocurrency-related financial services despite his personal negative attitude towards these assets.
The head of the banking giant said that digital coins are not comparable to fiat currency or gold. At the same time, Damon explained that he means cryptocurrencies, and not blockchains or stablecoins, and added that his personal views do not affect the financial services that JPMorgan Chase offers to its clients.
“A lot of our clients want us to help them buy cryptocurrency, so we are investing in this asset,” said Daimon at the JPMorgan Chase AGM.
According to Damon, the state should tighten regulations of cryptocurrency so that banks can offer a safer way to invest in this asset.
Institutional investors indecisive about bitcoin
The cryptocurrency market is developing rapidly, but institutional investors have not yet decided whether to invest in bitcoin or not. So, the CEO of the largest European bank HSBC, Noel Quinn, considers bitcoin and cryptocurrencies to be a high-risk asset and does not intend to support them in the future. Also, HSBC has no plans to launch a cryptocurrency trading platform or offer digital coins as investments to clients because they are too volatile and opaque.
At the same time, a subsidiary of ARK Investment, ARK Cryptocurrency US Fund, invested almost $20 million in bitcoin, according to the financial report of the US Securities and Exchange Commission (SEC).
Investment bank Goldman Sachs has launched the trading of non-deliverable forwards, a derivative pegged to the bitcoin price. There is no delivery of the underlying asset; instead, the holders receive settlements in cash. As such, the company shields itself from digital currency volatility by buying and selling bitcoin futures in block trades on CME Group Inc., using Cumberland DRW as its trading partner.
Think we missed something? Let us know in the comment section below.