The CEO of America’s biggest bank, J.P. Morgan Chase, doesn’t believe it is worth losing sleep over Libra for the time being. Dimon is of the view that in the short term, Libra will have little to no effect on banks and global payments in general. He further stated that the world would be talking about Libra in three years, so the conversation is fairly redundant today, as reported by CNBC, July 16, 2019.
Confident in the Strength of Banks
Jamie Dimon has completely played down the effect Libra could have on the global economy. In a conference call with analysts, Dimon stated that Libra’s short term influence is severely limited, and it would be a hot topic maybe three years from now.
He went to talk about how the banking industry has been considering and working on blockchain for the last seven years with no major breakthrough. His statements radiate validity as the supposedly breakthrough technology has failed to make its mark on banking.
There is the possibility that Dimon wants to sway public perception of Libra so that JPM Coin could thrive on the center stage. At this point, JPM Coin is being used with a few trusted partners, but it could be opened to the public if J.P. Morgan believes that the pilot was successful.
Dimon says he doesn’t mind competition and a level playing field, but any payment provider must conform to the strict AML regulations set in place. Big words for a man who runs a bank that paid $5.7 billion in money laundering fines in just the last one and a half years.
Bitcoin, Not Blockchain
The narrative that value was in blockchain and not bitcoin is slowly eroding as politicians and crypto enthusiasts figure out that it isn’t about speed and efficiency – its about resistance.
Libra is facing a multitude of difficulties with regulators because there is a face and company that can be held responsible for it. Bitcoin isn’t centrally developed and doesn’t have a face that can be held responsible if it was misused.
Everyone is slowly understanding that bitcoin doesn’t need cheap fees to thrive; because it’s killer feature is the ability to induce real free trade that no individual or entity can stop.