Financial Insights That Matter
- JPMorgan Chase joins Morgan Stanley and others in supporting Bitcoin
- It’ll show on statements, but JPMorgan won’t custody Bitcoin
- CEO Jamie Dimon is still sceptical about cryptocurrency
JPMorgan Chase announced at the company’s annual investor day that the banking giant will now allow clients to buy Bitcoin, however there is a catch.
CEO Jamie Dimon remains personally skeptical about Bitcoin and cryptocurrencies despite the bank’s move to support the currencies: “We’re not going to custody it. We’re going to put it in statements for clients,” he said.
The leader cited concerns about money laundering, ownership clarity and Bitcoin’s use in illicit activities like sex trafficking and terrorism, however he noted that his personal views shouldn’t get in the way of what customers want.
JPMorgan Chase to support Bitcoin
“I don’t think you should smoke, but I defend your right to smoke,” Dimon commented, adding: “I defend your right to buy Bitcoin.”
In past statements, the leader even called Bitcoin “worthless,” noting that he would shut down the crypto industry if he ad the power.
Revised FDIC guidance updated in March 2024 now allows institutions to engage in crypto activities without prior approval, marking more freedom compared with prior guidance. JPMorgan Chase’s decision to support Bitcoin brings it up to pace with Morgan Stanley and others, but it doesn’t bring Bitcoin in line with conventional currency.
More broadly, the institutional adoption of digital assets, including but also extending beyond cryptocurrencies, is seen as inevitable, and to disregard customers’ interests could see companies risk being left behind. However risks relating to unregulated industries remain a major concern.
Under President Donald Trump’s administration, US regulators have begun easing restrictions on crypto. However highly regulated industries have found it challenging to get on board with crypto quickly.
Bitcoin is currently worth over $105,000, slightly below its all-time high but considerably higher than its 2022 dip when it approached around $16,000.
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