During JP Morgan Chase’s Q4 2020 earnings call, CEO Jamie Dimon and CFO Jennifer Piepszak weighed in on the OCC’s recent approval of banks using stablecoins for payments, and whether or not the approval will affect the development of JPM Coin.
During the question-and-answer portion of the call, Portales Partners analyst Charles Peabody asked about the OCC’s approval for banks to use public blockchain networks for payments.
“That guidance makes it possible to offer stable going on a public blockchain. So that will not affect JPM coins. JPM coins, which you should consider the tokenization of our clients’ deposits, ”responded JPM CFO Jennifer Piepszak, according to a translation of the call.
However, she didn’t rule out the possibility of a JPM-backed stablecoin if customers showed interest.
So it’s clearly very early. We assess use cases and – and customer demand. But – but it’s too early to see where this is true for us. “
Jamie Dimon, JPM CEO, was also quick to step in, saying the bank “already uses blockchain to share data with banks, so we’re at the forefront of what’s right.”
JPM Coin debuted in October 2020 and is largely used on the backend of JPM’s payment systems, helping us settle nearly $ 6 trillion in payments every day. During the call, Piepszak also described the JPM Coin project as “the tokenization of deposits to make payments easier for the customer”.
Ultimately, Dimon seemed to suggest that crypto settlement isn’t going to change the way JPM works much.
“There is talk of different banks having digital currencies and things like that, right?” Dimon decided. “[…] So I – I really expect things to come and it might not change our world that much “
Dimon may underestimate the impact crypto will have on the payment landscapehowever.
Paypal, one of the Fintech giants who mentioned Dimon by name as a payment competitor, confirmed that crypto payments will be available from 2021. The CEO – a former known skeptic of cryptocurrencies – made it clear that payments will become an increasingly busier and cutthroat field over the next decade:
I expect it to be very, very tough competition for the next 10 years. I expect to win. So help me God.