Wall Street banks have never accepted Bitcoin – Jamie Dimon, CEO of JP Morgan, has always been very vocal with his skeptic statements about the crypto. However, despite the head of the institution having such views, JP Morgan has released a 71 page-long detailed document about Bitcoin titled “Decrypting Cryptocurrencies: Technology, Application, and Challenges.”
Surprisingly, in the report, JP Morgan acknowledged the benefits of blockchain technology and cryptocurrencies. An excerpt from the report reads: “CCs are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks, and anonymity, even as the latter is under threat.”
The bank praised the blockchain technology as the report mentioned: “The underlying technology for CCs could have the greatest application in areas where current payments systems are slow, such as across borders, as payment, reward tokens or funding systems for other Blockchain innovations and the Internet of Things, as well as parts of the underground economy.”
JP Morgan published their so-called “Bitcoin Bible” the same day the New York Fed admitted that “in a dystopian world, Bitcoin Would Dominate Payment Methods.”
The report further admits the acceptance of cryptocurrencies in the mainstream market as it noted: “Hedge funds have been moving into this market making up most of the 175 CC funds but AUM remains only a few billion dollars.”
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“Asset managers are experiencing limited success in bringing products to market and have not been able to launch CC funds or ETFs without support from the SEC or major distributors,” it added.
Assessing the cryptocurrency penetration in global markets, JP Morgan team wrote that cryptocurrencies “could potentially have a role in diversifying one’s global bond and equity portfolio.”
Jamie Dimon vs Bitcoin
JP Morgan’s CEO, Jamie Dimon, is still very critical about Bitcoin and other cryptocurrencies. Though his firm has acknowledged the potential of cryptocurrencies, he, personally, never complimented the emerging digital economy. Last year, he trashed Bitcoin calling it a fraud and compared its craze with the infamous bubble of “Tulip bulbs.” Dimon publicly announced that “if you’re stupid enough to buy [Bitcoin], you’ll pay the price for it one day.”
Earlier this month, JP Morgan, along with Bank of America and Citigroup, has banned all cryptocurrency-related transactions on their credit cards. Citigroup, however, confirmed that it will review its policy in this regard.
Wall Street’s stance about the cryptocurrencies always has been critical. However, as more and more money is flowing into the cryptocurrency economy, they cannot ignore the market for long.