Jamie Dimon, CEO of JPMorgan, acknowledges that DeFi and Blockchain are “real technologies” with utility – DiarioBitcoin

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Jamie Dimon, CEO of JPMorgan, acknowledges that DeFi and Blockchain are "real technologies" with utility - DiarioBitcoin By Hannah Perez

The banking giant could be directing some of its massive $12 billion investment in technology towards Blockchain and DeFi-related developments.

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The CEO of the investment bank JPMorganJamie Dimon acknowledged that blockchain technology and decentralized finance (DeFi) can have great utility.

Dimon, who has been a skeptic of Bitcoin and cryptocurrencies for a long time, modestly praised the distributed technology in a letter to shareholders. the news media Forbes collected excerpts from the letter.

The decentralized finance and Blockchain are real and new technologies that can be deployed both publicly and privatelyallowed or not“, commented the executive, highlighting some of the benefits of adopting this technology.

We believe there are many uses for a blockchain to replace or enhance contracts, data ownership, and other functionality; however, for some purposes.

JPMorgan invests in Blockchain

The chairman of one of the largest financial institutions in the United States shared his views shortly after an earnings call from JPMorgan in which bank announced plans to increase its annual technology budget to $12 billion26% more than you spent in 2020, according to tear sheet.

Dimon’s letter came in response to shareholder requests for more concrete investment plans for those resources. Although the CEO did not provide detailed information on the areas of investment, he did advance some of the places where this money could go. He said that it will be invested mainly in solutions for the maintenance, optimization and innovation of the bank.

Some of these investments [en tecnología] they simply need to be done to maintain the health of the company. Investments in this bucket help keep the boat in top shape and address a wide range of needs.

Dimon mentioned a number of technologies such as artificial intelligence (AI), cloud-based systems, blockchain, and decentralized finance, hinting at some of the investment areas of JPMorgan for your huge budget this year.

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We use a Blockchain network called Liink so that banks can share complex information, and we also use a Blockchain to move tokenized dollar deposits with JPM Coin“Said the president regarding the blockchain, a sector on which the bank assured it remains”at the forefront”.

However, he was also careful to temper his praise by adding that, for some purposes, technology blockchain is “currently too expensive or too slow to implement“.

Dimon is a Bitcoin Skeptic

This is not the first time Dimon has spoken highly of the technology behind digital currencies. Two years ago, he anticipated that blockchain it would play a key role in the future of finance and he assured that the bank would always support this innovation.

“Blockchain itself will be instrumental in helping people move money around the world more cheaply… We will always support Blockchain technology”he said during a conference held at the end of 2020, which was organized by the New York Times. However, despite this favorable position, he has remained critical of Bitcoin.

“It’s not my cup of tea“, commented the CEO of JPMorgan at that moment. More recently, he reiterated his disinterest and boldly asserted that “Bitcoin It does not have value” when the price of the asset challenged USD $56,000. He also questioned the limited supply of the flagship cryptocurrency during an event in December last year.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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