JP Morgan Head of Digital Assets: “Most of crypto is still junk”
The banking giant JP Morgan has, in recent years, warmed up significantly to Blockchain technology with this May seeing the firm trailing tokenized collateral settlements through its own private Blockchain. This being said, its chief officer in the field Umar Farooq has argued that most of the Crypto market is still held aloft by speculation.
JP Morgan and the crypto market
Umar Farooq serves as the head of JP Morgan’s Head of Digital Assets through the firm’s Blockchain unit Onyx Digital Assets (ODA). His comments were made during a panel discussion at the Monetary Authority of Singapore’s Green Shoots Seminar this week during which he pointed out how regulatory bottlenecks were holding back traditional financial giants such as institutional investors from involving themselves more actively in the space.
“So in my mind, the use cases haven’t arisen fully, and the regulation hasn’t caught up and I think that’s why you see the financial industry, in general, being a little bit slow in catching up
Elaborating on this, he noted that while Blockchain’s potential was worth exploring, the current market was still mainly lacking in terms of use-cases and real life application.
“Most of crypto is still junk actually, I mean with the exception of I would say, a few dozen tokens, everything else that has been mentioned is either noise or frankly, is just gonna go away.”
He also noted that the sector itself hasn’t matured to the point where it can be a pillar of transaction for high-value fiscal exchanges common amongst institutional investors.
“You need all of those things to mature so that you can actually do things with them. Right now, we’re just not there yet, most of the money that’s being used in Web3 today, in the current infrastructure, is for speculative investment.”
Up Next: Malta Week 2022
After the successful completion of the AIBC Toronto and Dubai Summits, SiGMA Group is working diligently on this year’s edition of Malta Week. From the 14th to the 18th of November, the company’s most prominent brands will be brought together under one roof for the AIBC Europe Summit, the premier networking opportunity of the year. The Summit at MFCC Ta’Qali is a stellar expression of European innovation in the Gaming, Esports and Emerging Tech sectors, featuring numerous panels and conferences by leading experts. Interested in joining our long list of speakers, exhibitors or sponsors? Please contact Sophie to reserve your spot, or visit our website for more information.
