Major Bank Owner Addressed The Senate: Crypto Is Good, But Requires Regulations

The CEOs of some of the largest banking institutions in the United States had the opportunity for a hearing at the US Financial Services Committee. The gathering took place on April 10th, with JPMorgan Chase’s CEO Jamie Dimon, Bank of New York Mellon’s CEO Charles Scharf raising a red flag of criticism against the now used blockchain-based cryptocurrency system.

Congressman Warren Davidson’s point of view was in favor of cryptocurrencies, as they are transforming the way we look at money nowadays. His precautions, however, are in the regulatory domain – regulatory frameworks take time to be made, thus – keeping the blockchain industry still far from the banking world.

JPMorgan Chase’s CEO showed a wave of support towards cryptocurrencies and blockchain as well.

“We are opting in for cryptocurrencies, as long as they fall under regulatory frameworks,”  Dimon stated.

JPMorgan recently showed cryptocurrencies could be fully utilized in the banking realm via introducing their own cryptocurrency – the JPM Coin.

Although Dimon was a nonbeliever in cryptocurrencies, the launch of JPM Coin states that the CEO changed his mind.

JPM coin is a form of a “stablecoin” used primarily for institution-to-institution transfers. JPMorgan acknowledges the fact that blockchain technology would cut down transaction costs, increase speeds and efficiency.

“We created JPM Coin because we needed a fast, secure and transparent way to make payments between our branches or other institutional players.”, Dimon added

Charles Scharf, CEO of Bank of New York Mellon, took a defensive stance when it comes to cryptocurrencies:

“Cryptos are still very young, so we can not take them seriously when we speak about using them like fiat money. The biggest concern we have is with the AML and KYC protocols not falling under the legislation.”, Scharf stated.

While banking leaders take a slightly defensive stance, cryptocurrencies take a prominent place in modern trading, with a market capitalization of $172 billion and daily trading volumes surpassing $50 billion.