Umar Farooq, CEO of Onyx, JPMorgan’s blockchain unit and digital assets subsidiary, said that the vast majority of cryptocurrencies on the market are “junk” with few actual application scenarios and will eventually disappear.
Umar Farooq pointed out at a seminar held by the Monetary Authority of Singapore (MAS) a few days ago that many traditional financial (TradFi) institutions have been stymied in entering the cryptocurrency industry due to the lack of regulation to keep up with the pace of innovation.
Umar Farooq also feels that most cryptoassets lack utility, with a few exceptions, stating:
In fact, the vast majority of cryptocurrencies are still garbage, I mean, except for a few dozen coins, the rest of the cryptocurrencies are either just a flash in the pan, or they will all disappear.
Umar Farooq continued that the financial industry has been slow to catch up with tokenized deposits because regulation has not caught up and there are not many use cases. He went on to point out that the cryptocurrency industry is not yet mature enough to support high-value “formal transactions” between traditional financial institutions or products such as custodial tokenized deposits.
Instead, Umar Farooq believes that, at this stage, the vast majority of money in the Web3 ecosystem is being used for speculation.
JPMorgan itself is one of the banks involved in the development of blockchain and encrypted assets. In October 2020, it launched the stable currency project “JPM Coin”, the main use case is cross-border payment.
Although JPMorgan has softened its stance on cryptocurrencies over the past few yearsbut the banking giantPrimarily focused on providing blockchain infrastructure, andUse it to improve the services of traditional financial institutions. Since its inception in 2020, Onyx has conducted transactions worth approximately $300 billion.
As part of the Singapore central bank’s plan to experiment with the economic potential and value-added use cases of cryptocurrencies, JPMorgan Chase, together with DBS Bank and digital market infrastructure operator Marketnode, is working together to build a blockchain platform, Blocker reported in June this year. On-chain experimentation with decentralized finance (DeFi) applications and asset tokenization.
This article, CEO of JPMorgan’s blockchain division: Most cryptocurrencies are “junk” first appeared on Blocker.