Șeful JPMorgan Blockchain spune că cea mai mare parte a cripto-urilor este Junk

Umar Farooq, Chief Executive Officer of JPMorgan’s blockchain unit, believes that real use cases of crypto are yet to unravel while most of the existing assets are “junk” with only a few exceptions.

Vorbire at the Monetary Authority of Singapore’s (MAS) Green Shoots seminar on Monday, Farooq said that the regulation has also not caught up with the burgeoning sector, thereby obstructing the foray of several many traditional financial institutions.

„Cea mai mare parte a cripto-urilor este încă gunoi de fapt, adică, cu excepția aș spune, câteva zeci de jetoane, tot ce s-a menționat este fie zgomot, fie, sincer, va dispărea.”

Regulated Entities For The Win

Farooq, who happens to be the heading of JPMorgan’s Onyx, said that users would eventually move to financial institutions that are regulated to conduct “serious” large-value transactions primarily because the infrastructure will be backed by the government and regulators. Having said that, the exec remarked that private options will always exist in the sector.

While arguing that the sector has not matured enough, the  JPMorgan executive went on to say that a major chunk of the capital in the Web 3 ecosystem at this stage is for speculative activities.

„Aveți nevoie de toate aceste lucruri pentru a vă maturiza, astfel încât să puteți face lucruri cu ele. În acest moment, pur și simplu nu suntem încă acolo, majoritatea banilor care sunt folosiți în Web3 astăzi, în infrastructura actuală, sunt pentru investiții speculative.”

JPMorgan Ever Changing Crypto Stance

Farooq’s comment follows MAS’s new directive wherein it revealed plans to shut off crypto speculation but not stifle crypto innovation. In the seminar itself, the Singaporean financial regulators have projected a consistent message that while the digital asset industry as a whole holds much promise, trading in cryptocurrencies is risky for non-professional investors. JPMorgan’s own views mirror the prevalent sentiment.

Even though the multinational investment bank has warmed up to crypto, it has kept its focus fixated on blockchain tech. As such, it transportate out a pilot transaction where two of its entities transferred the tokenized representation of asset manager – BlackRock Inc. money market fund shares as collateral on its private blockchain. JPMorgan had claimed that it achieved “frictionless transfer of collateral assets on an instantaneous basis.”