JPMorgan CEO Jamie Dimon Embraces Blockchain While Criticizing Cryptocurrencies

Jamie Dimon Says JPMorgan Is Likely 'One Of The Bigger Users' Of Blockchain Technology, But Calls Cryptocurrencies A 'Pet Rock' - Grayscale Ethereum Mini Trust (ETH) Common units of fractional undivided beneficial interest (ARCA:ETH)

Jamie Dimon, CEO of JPMorgan Chase, stated that the bank is "probably one of the bigger users of blockchain" during an interview on Tuesday at the Financial Markets Quality Conference. What Happened: Dimon, who has been skeptical of cryptocurrencies, emphasized that JPMorgan is an "actual user" of blockchain technology. He described blockchain as "just a database" and highlighted its utility in sharing data and building trust between banks and customers, reported The Block. "We're probably one of the bigger users of blockchain, an actual user, like a real user," Dimon said, according to the report. Despite his skepticism towards cryptocurrencies, Dimon acknowledged the effectiveness of blockchain technology. He reiterated his view by calling cryptocurrency a "pet rock" but praised blockchain as a "great way to share data." JPMorgan's blockchain network, Onyx, was launched in 2020 and is based on a forked version of Ethereum ETH/USD. It supports wholesale payments, peer-to-peer lending, and cross-border transactions. The network has processed over $700 billion worth of transactions and includes firms like Goldman Sachs, DBS Bank, and BNP Paribas among its users. See Also: Bitcoin, Ethereum, Dogecoin Pump 5%: Here's What Wednesday's Fed Rate Cut Decision Could Mean For Crypto Dimon has consistently dismissed cryptocurrencies while advocating for blockchain. At Davos in 2021, he labeled Bitcoin BTC/USD a "hyped-up fraud" but acknowledged blockchain's efficiency in moving money. He reiterated on Tuesday that blockchain has not advanced as much as artificial intelligence over the past 12 years. Dimon, who once suggested banning crypto, is reportedly a candidate for Treasury Secretary if Donald Trump wins reelection. He mentioned that while Chase might not lend against cryptocurrencies, clients still have access to some crypto services. Why It Matters: Dimon's recent comments come amid a backdrop of significant shifts in the cryptocurrency landscape. Dimon reiterated his harsh stance on Bitcoin, recalling his statement from seven years ago, in which he said he would "fire in a second" any JPMorgan trader caught trading Bitcoin. Despite this, JPMorgan has investments in exchange-traded funds tied to Bitcoin, such as the Grayscale Bitcoin Trust GBTC. Additionally, Trump and his family have launched a cryptocurrency project called World Liberty Financial, signaling a dramatic shift from the former President's previous stance on digital currencies. The skepticism towards Bitcoin is not isolated to Dimon. Renowned economist Peter Schiff and tech billionaire Peter Thiel have also voiced doubts about Bitcoin's potential. Schiff stated in August that he hasn't seen any convincing argument to embrace Bitcoin, while Thiel expressed skepticism about Bitcoin's future growth. Read Next: Donald Trump's Son Barron Is His 'Chief DeFi Visionary,' But The Real Mastermind Behind World Liberty Liberty Financial Is Someone Else Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs

JPMorgan uses blockchain, but it's 'just a database' for Jamie Dimon

Dimon previously referred to digital assets as decentralized Ponzi schemes Jamie Dimon, the CEO of JPMorgan Chase, is known for his skepticism toward cryptocurrencies, drawing the ire of digital asset users for his critical words against the rising industry. At the Financial Markets Quality Conference Tuesday, Dimon made a revelation that triggered talks in the crypto community. Is he softening up toward blockchain and crypto? JPMorgan Chase Uses Blockchain When asked about how the bank uses new technologies such as blockchain and artificial intelligence, Dimon acknowledged that "technology is the thing that's changed the world - that's always been true." He said he would "put AI in the same category" as the internet. He revealed that many workers at JPMorgan use AI across various use cases such as risk and fraud. He added that companies should use technology to make things better for clients. When pressed further if JPMorgan Chase uses blockchain, Dimon confirmed: "We're probably one of the bigger users of blockchain, an actual user, like a real user." However, he noted that blockchain "is just a database." The financial expert did admit that blockchain is "a great way to share data," however he reiterated that while the world has been talking about blockchain for years, "not much has happened." "It ain't like AI. It's just a new piece of computer technology," he said, further emphasizing that he's "not a fan of cryptocurrency," which he calls "a pet rock." Dimon has been Leaving a Bad Taste in Crypto Dimon first garnered outrage from Bitcoiners after he called the world's largest cryptocurrency by market value a "pet rock" at the World Economic Forum in Davos earlier this year. At the time, he also acknowledged that blockchain is a real innovative technology, but he insisted that Bitcoin "does nothing." His comments triggered responses from many BTC users, including Bitcoin maximalist and MicroStrategy executive chairman Michael Saylor, who wittily explained how BTC works. Dimon has been critical of crypto over the years, at one point calling digital assets "decentralized Ponzi." schemes He has been citing the digital coins' vulnerability to exploitation by threat actors. Banking Executive Called Out Anew The Block co-founder Mike Dudas took to X to share his thoughts about Dimon's latest tirade against crypto. "We're gonna replace these boomers over decades, they have no idea what's happening," he said. One Ethereum user said Dimon "doesn't even understand how poorly run his bank is because it's too big to fail," while another user said he first thought the banking expert was "gaslighting" but it now turns out he is just "clueless" about how crypto works. While some big bank such as Standard Chartered and Morgan Stanley have taken a more open-minded approach to crypto in recent years, it appears JPMorgan is still hesitant. It does have Onyx, described as a bank-led blockchain platform.