It is difficult to tell. Jamie Dimon, JP Morgan’s CEO has long been a detractor of cryptocurrencies. They just seem to rub him the wrong way. Nevertheless, Mr Dimon has a point.
After the 2008 crisis, it would be foolhardy to say the least to plunge into the next speculative bubble just because it looks somewhat promising. Mr Dimon’s trepidation has found an outlet in the company’s latest decision to ban buying cryptocurrencies with credit cards.
As a result, customers at JP Morgan Chase, Bank of America and Citigroup will find their buying options quite limited when it comes to cryptocurrencies.
Previously, JP Morgan acknowledged publically that its customer could use their cards to purchase crypto assets. The latest U-turn signals an interesting internal strife in the organization.
Meanwhile, Citigroup has commented that the bank is revising its policy regarding the purchase of such assets.
JP Morgan’s reversal was sudden but not unexpected. Mr Dimon has been highly critical of the cryptocurrencies ever since they have appeared.
Qualifying them as crook assets, Mr Dimon has not take any restrictive measures against the assets up until now. Still, the decision of the company can be seen as unanimous.
It is normal, however, that questions will be raised about the future of the crypto sector as a whole. Does this mean that JP Morgan will have no further truck with the fraternity of digitalized assets?
This solely depends on which way the wind of change blows. If legal framework eventually succeeds in underpinning clear-cut rules, it is quite likely that JP Morgan will reconsider its stance.
Meanwhile, the official statement was that the market is still too volatile for customers to be purchasing dodgy assets en masse.
The concern exhibited on this occasion is genuine. Bad loans have been the reason for previous economic precipies. It is naturl that flagship institutions would seek to put the crack on any dodgy dealings.
JP Morgan, a custodian of the innocent
We approve of JP Morgan’s strategy. Narrowing down the scope of cryptocurrency purchases is actually a good thing. It helps the average bank customer in at least two ways.
Frist, it clearly signals that if an institution with financial heft such as JP Morgan is unlikely to throw their weight in support of these assets, perhaps the average consumer has to ask themselves why.
In any event this leads to more awareness and educated decision making. It is not only that, of course, but awareness is key.
A curious individual may ask themselves why cryptocurrencies may seem somewhat difficult to purchase.
Speculations coul be proferred quite readily. Some would argue that, well, the economic climate in the United States is less open to this new sort of unbridled speculative devices.
And they will be right to an extent. Then again Asian countries are also fighting the good fight of limiting the reach of cryptocurrencies, and quite understandably at that.
JP Morgan will restore cryptocurrencies, question is when
We believe that JP Morgan will not pass up on a promising bargain. But the concerns about the stability of the asset is reason enough for their free-floating to be reconsidered entirely.
As consumers we ought to seek and strike a balance between what is a promising investment and what regulators want us to do.
Interestingly enough, a similar debate is taken up by proponents of cryptocurrencies and regulators who are hard at trying to hammer out the legislator latticework of cryptocurrencies.