Jamie Dimon: ‘Decentralized Finance (DeFi) And Blockchain Are Real’

Jamie Dimon, the Chief Execitive of JP Morgan CEO wrote to bank’s investors on how powerful blockchain can for various sectors, and how fintech companies present a competitive threat.

Jamie Dimon, in a letter to shareholders, communicated strong support for decentralized finance (DeFi) and blockchain technology, shifting his views around his previous takes on crypto.

Dimon discussed various of topics such as the geopolitical climate, macroeconomic conditions, the changing competitive landscape, and company investments. He pointed out that JP Morgan has invested in modernizing the business over the last five years, to be able compete with both banks and fintech companies.

One of the new innovations is JPM coin, which a US dollar-backed stablecoin aimed for big businesses. It offers the bank both “account validation”, and “programmable payments”.

The stablecoin trades on the blockchain LIINK, which is already used by over 400 financial institutions.

“Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not. JPMorgan Chase is at the forefront of this innovation.”

Dimon believes there are “many uses where a blockchain can replace or improve contracts, data ownership, and other enhancements.” However, there are still some use cases for which it is “currently too expensive or too slow to be deployed.”

The JP Morgan CEO also said that competition from fintech is “intensifying”, and is contributing to the diminishing role of banks in the global financial system.