Jamie Dimon, CEO of JPMorgan Chase, says he doesn't fully understand the appeal of Stablecoins, but he doesn't have the time to sit on the sidelines.
This message from Dimon attracted attention as he answered questions about Stablecoin technology at a balance sheet meeting held today.
Stablecoins, as their name suggests, are cryptocurrencies that are usually fixed in tort currencies such as the US dollar, with the aim of value stability. Last month, JPMorgan announced the development of a limited edition Stablecoin solution designed specifically for its own clients. However, more common Stablecoin is expected to appeal to a much broader user base.
“As JP Morgan, we are involved in both our sediment coins and our stub coins. We want to understand and become proficient in this space,” Dimon said. “Stable Coins are real, but I still don't fully understand why I want to use Stubcoins instead of paying directly.”
Dimon, 69, is known for his criticism of cryptocurrencies, particularly Bitcoin. However, JPMorgan's massive presence in the sector means that its daily global payments are around $10 trillion, meaning that the company cannot afford to ignore new payment technologies.
Dimon said fintech companies are trying to create alternatives to the traditional banking system, saying, “These people are very smart. They want to create bank accounts, access payment systems and provide reward programs. This needs to be noted.
Citigroup executives said in a statement today that they are investigating the possibility of issuing stubcoins, particularly in areas such as tokenized deposits and cryptocurrency storage.
*This is not investment advice.
