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J.P. Is Morgan the “enemy of bitcoin” or his secret admirer?

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J.P. Is Morgan the 'enemy of bitcoin' or his secret admirer?

J.P. Morgan is the “enemy of bitcoin” or his secret admirer?
CONTENT

  • J.P. Morgan starts banking services for first cryptocurrency clients.

  • Presumably the heads of J.P. Morgan and Coinbase were in secret negotiations.

  • The bank’s position on cryptocurrencies remains inconsistent..

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JP Morgan Bank, an ardent opponent of cryptocurrencies, maintains the accounts of two crypto exchanges, and also conducted secret negotiations with Coinbase.

J.P. Is Morgan the 'enemy of bitcoin' or his secret admirer?

J.P. Morgan’s attitude to the cryptoindustry could always be described as “everything is complicated”. However, it seems that the bank is significantly softening its position on this issue. He first included two crypto exchanges in his client list. In addition, the head of J.P. Morgan allegedly was in secret negotiations with the CEO of major cryptocurrency exchange Coinbase.

From hate to love

One of the largest US investment banks J.P. Morgan and personally its head Jamie Dimon have long established themselves as open opponents of Bitcoin and other alternative currencies. Many members of the crypto community still remember Daimon’s statements from 2017 when he called Bitcoin an outright fraud..

However, he later announced that he regretted his comments, and also generally spoke positively about the idea of ​​the blockchain technology itself. Further, last year, the bank announced the upcoming launch of its own cryptocurrency JPM Coin. And now, in May 2020, JPMorgan has started banking services to two of the leading crypto exchanges – Coinbase and Gemini..

This can certainly be considered a good sign for representatives of the crypto industry, who are traditionally discriminated against in the traditional banking segment. So, they are often denied services or blocked accounts. Also, the BeInCrypto editors recently reported that J.P. Morgan had to pay $ 2.5 million to settle clients’ class action lawsuit for illegal levies on cryptocurrency transactions.

In addition, as Jeff Roberts revealed in his book Kings of Crypto and on the podcast Unchained, Daimon hosted J.P. Morgan secret meetings with his “archenemy” – the head of Coinbase Brian Armstrong.

Blockchain is bigger than bitcoin

Paradoxically, Armstrong himself is also considered by some to be a “bitcoin skeptic”, noting that in this regard, his company is showing increased interest in other blockchains and altcoins, including Ethereum. In particular, Bloomberg analyst Joe Wiesenthal shares this opinion..

Probably, this attitude is consonant with the position of J.P. Morgan. In February, the bank published a 74-page report in which it analyzed in detail the current situation around the blockchain. The bank’s experts admitted that this technology has huge potential for the financial sector, but at the same time said that they still doubt that cryptocurrencies can play an important role in diversifying investment portfolios or as a hedging tool..

In this regard, they refrained from recommending to their clients the ownership of alternative digital assets. We have already said that it is standard practice for many banks to actively discourage their clients from investing in cryptocurrencies. Apparently, J.P. Morgan believes that blockchain and digital currencies gain value only when the bank itself begins to use them.

What do you think is behind the controversial J.P. Morgan about cryptocurrencies? Share your opinion in the comments and join the discussion in our Telegram channel!

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