JPMorgan CEO: Most Banks Are Probably Looking at the Blockchain

JPMorgan CEO Jamie Dimon has weighed in on Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term again, expressing cautious optimism over Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology and offering a glimpse into the bank's plans for it.

He made the comments as part of a 40-minute Q&A session at the Barclays Global Financial Services Conference in New York, as reported by American Banker. In it, he sought to dispel reports that the bank is looking to exit its custody and cash management businesses, seeking to reassure attendees over the bank's competitive position.

Regarding Bitcoin, he reiterated his previously stated position that it cannot succeed as a currency, but expressed intrigue over how blockchain technology, which powers Bitcoin, can shape the future of our financial system. Such a philosophy is emerging as the mainstream line of thought among financial institutions and government.

However, he sounded a cautionary note, pointing out that while such a system may be more efficient, the bank needs to ensure that it is secure.

He referred to JPMorgan's recent foray into the space, joining a growing list of banks to do so. "We have a study group on this whole thing.… And I think most of the banks do at this point."

Significantly, JPMorgan has also met with Digital Asset Holdings CEO Blythe Masters, who joined the startup earlier this year. Masters previously headed JPMorgan's investment bank as well as its commodities unit, and was strongly supported by Dimon during her tenure. The bank has also met with "a bunch of these other blockchain companies."

Dimon previously commented that bitcoin as a currency is “a terrible store of value”. On the potential threat it poses to banks, he said in 2013 that “Bitcoin developers are going to try and eat our lunch and that’s fine,” adding that “that’s called competition and we will be competing.”

Earlier this year, he acknowledged the threat posed by Bitcoin and other emerging technologies to the traditional banking model. During a conference call with shareholders, he mentioned that the bank is examining its competitors in “excruciating detail”.