Ron Karpovich, the Global Head of e-commerce at JP Morgan, said that blockchain technology could enhance existing payment channels.
In a recent interview with CNBC, Karpovich pointed out that there is a difference between trading an existing digital asset and using its core technology to enhance the payment infrastructures by executing payment settlements efficiently at a cheaper rate.
He also added that the payment system deployed by leveraging blockchain tech would not be visible to consumers who will just have to choose a preferred payment mode. Only the end result of cheaper and instant settlements would be experienced by the users, he said.
While the crypto community vouches for a payment system that is secure, fast, cost-effective, and decentralized, with no third-party interventions, Karpovich is of the opinion that ultimately, for any payment to settle, a banking establishment is important. JP Morgan’s anti-crypto rhetoric in the past and its foray into the market with its own coin is something worth noticing.
JPM Coin, which is currently reserved for institutional clients is a product of JP Morgan. The financial behemoth has historically been one of the biggest critics of Bitcoin. The company had previously published reports on the cryptocurrency market in general, with its analysts stating that Bitcoin might be effective in a dystopian future.
Jamie Dimon, the CEO of JP Morgan, previously called Bitcoin a fraud. Apologizing for the same earlier this year, he stated that he believed in the underlying technology. He said,
“I didn’t want to be the spokesman against Bitcoin. I don’t really give a sh*t, that’s the point. Blockchain is real, it’s technology, but Bitcoin is not the same as a fiat currency.”
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