Jamie Dimon On Facebook’s Libra & The Cryptocurrency Era!
The recent cryptocurrency wave excited enthusiasts after JP Morgan Chase launched its cryptocurrency, JPM Coin. But soon after the release, questions were raised on JPM coin being an internal token used to settle transactions within JPM clients and fully controlled by JP Morgan. This year we have also seen, social media giant, Facebook (FB) announce its cryptocurrency called Libra and digital wallet called Calibra stated to launch in 2020. Soon after the announcement questions were raised by cryptocurrency industry on its decentralization and control by Facebook, owing to the fact that Libra’s Blockchain has selected members behind it and concerns over Libra being open and public were raised.
JPMorgan CEO Jamie Dimon too flagged off few concerns and questioned Libra’s independence, “Will they follow banking rules or KYC, BSA, AML,”, “or will they not? But they obviously want to serve their clients, and that’s fine. I also want to be able to serve their clients, too. We would like to do some of it too, ourselves, and we don’t always want to be forced into someone else’s ecosystem.” he stated in an interview to yahoo finance. Dimon further added “The existing blockchain systems have yet to reach mainstream adoption… Some projects have also aimed to disrupt the existing system and bypass regulation as opposed to innovating on compliance and regulatory fronts to improve the effectiveness of anti-money laundering. We believe that collaborating and innovating with the financial sector, including regulators and experts across a variety of industries, is the only way to ensure that a sustainable, secure and trusted framework underpins this new system.”
Facebook has made it a point to assure all on the privacy of Libra customers’ financial data being separate from Facebook social data but Libra’s no mention of “KYC” “know your customer” rules and lack of regulatory terms have kept the cryptocurrency industry uncertain. Libra’s exposure to a large user base data and Zuckerberg’s highly reported ambition to get banking rolling for Facebook clearly makes it one of the possible tough competitors for JP Morgan in the cryptocurrency league.
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