Jamie Dimon, the CEO of J.P. Morgan Chase said he does not expect the Libra cryptocurrency planned by Facebook to have a short-term impact on the bank.
In a call from analysts on Tuesday, reported for the first time by CNBC, Dimon seemed to suggest it was too early to speculate on how the effort, advertised as a global currency for the unbanked, would affect his company or his outlook. JP Morgan is the leading bank in terms of retail deposits in the US. UU., According to its most recent annual report.
"We're going to talk about Libra in three years, I would not spend too much time on that," Dimon said, when asked about Facebook's entry into the financial sector through cryptocurrency.
The executive director added:
"To put it in perspective, we've been talking about blockchain for seven years and very little has happened."
In previous interviews, Dimon has observed that cryptocurrency companies can compete with legacy banks. However, he believes that regulations will be a factor in the way these technologies can be implemented to the public, which could delay their terms.
"Governments are going to insist that people who have money or move money live according to the rules where they have the right controls in place; "Nobody wants to help and instigate terrorism or criminal activities," said Dimon.
Facebook planned to debut the cryptocurrency with stable support in 2020, but has since said it will not offer the digital currency until all regulatory concerns have been addressed.
"We do not care about the competition," said Dimon. "The request will always be the same: we want a level playing field.
JPMorgan proposed its own cryptocurrency, JPM Coin, in February to be used internally to accelerate transactions. "The technology is very good, but it takes time in terms of licensing and approval. It should be explained, "said lead developer, Umar Farooq, before beginning the trial period.
For its part, David Marcus, lead developer of Facebook's block chain, said Libra "is not designed as a substitute for bank accounts," at a Senate Committee hearing on yesterday's cryptocurrency. A second day of testimonies is underway.
Jamie Dimon through CNBC