Jamie Dimon, not one to shy away from a controversial comment about cryptocurrency, has shared his thoughts on Facebook’s under fire Libra project. The head of JP Morgan has said the stablecoin is “a neat idea that will never happen.”
The interesting thing about such a comment from Dimon is that he, and his Wall Street bank, have been moving forward with their own stablecoin, JPM Coin, which has many similarities to Libra. Dimon, in fact, following his comments on Libra, was happy to discuss how they are progressing with blockchain tokens.
The conversation from Dimon again raises comments about why Libra is facing such scrutiny from regulators and governments, while these stablecoins, being created by banks, are being entirely left alone.
Dimon, discussing Libra, did not seem to be impressed by the idea stating that it was not unique, and even hinting towards his own company’s coin, but he did go so far as to mention JPMorgan is spending over $11 billion on technological developments this year, which will include the advancement of their blockchain token.
JP Morgan is using blockchain technology and cryptocurrency in order to provide cross-border payments for large corporate clients, securities transactions, and usage in JPMorgan’s treasury services business to replace the funds that firms hold in various subsidiaries across the world.
This usage of a stablecoin that has been created by a private entity is not facing nearly the same scrutiny as Libra has done – which is confusing. JPMorgan will state that they are not creating a new currency with their token, as it is backed by US dollars, but that is also the same argument that Libra has, and has made.
The pressure Libra has faced has, unashamedly, been created at the crucible of anti-Facebook sentiment. The US pressure especially has seen the Senate, as well as a few Senator, bash not only Libra but its parent company for their role in privacy scandals of late.
However, the more innovative side of things – and as Dimon calls it, the ‘neat’ part of the project – has been identified by at least one person in Congress, Senator Round. Sen. Mike Rounds (R-S.D.) has sent his own letter of support to the remaining members of the Libra association, praising them for their innovative stance and imploring them to push the US forward in this technological arms race.