Dimon, who is known for his caustic comments about Bitcoin in the past, isn’t worried about Facebook’s digital currency Libra. On Tuesday, he commented on project Libra and said that he doesn’t see it as a near-term threat for his company. Note that JP Morgan Chase is actively developing a blockchain project and has launched an in-house cryptocurrency as well.
Blockchain Isn’t Moving That Fast
During a conference call with analysts, Dimon said, “To put it in perspective, we’ve been talking about blockchain for 7 years and very little has happened. We’re going to be talking about Libra three years from now. I wouldn’t spend too much time on it.” JP Morgan’s own coin, JPM Coin, is designed to help transform the global payments landscape- a goal that is dear to Facebook’s Libra as well. However, the bank’s efforts will remain under regulatory purview only.
The Wall Street heavyweight hasn’t attracted as much scrutiny and criticism for its cryptocurrency project as Facebook. The situation with the social media giant is dire as even the US president has suggested them to get a banking charter if they are interested in operating as a bank. Central bank officials and elected government representatives from around the world are questioning Facebook’s coin too.
Need for Regulatory Compliance
Dimon also said that any effort undertaken must conform to the rigorous anti-money laundering rules. As a bank, they have more experience in handling and abiding these rules than a tech company like Facebook. Dimon also said that they don’t mind competition in the market but want a level playing field. He specified, “governments are going to insist that people who hold money or move money all live according to rules where they have the right controls in place; no-one wants to aid and abet terrorism or criminal activities.”
Facebook representatives appeared before the Senate Banking Committee today and are scheduled for another hearing before the House Financial Services Committee on Wednesday.