Amber Baldet, former Executive Director of the JPMorgan Chase Blockchain Center of Excellence, said that financial institutions like JP Morgan could embark on cryptocurrencies.
Traditional banks and cryptocurrencies
“I think it probably happens sooner than people think,” said Amber Baldet at CNBC Power Lunch. “But even where there is willingness, their legal and regulatory framework is difficult and their conservation is a huge challenge. “
The words of the former Executive Director relate to three important points. First, when it refers to “probably coming sooner than people think,” it alludes to the big Wall Street banks, the vast majority of which avoid crypto-currencies because of their commitment to Blockchain technology. The requests of the customers also favor a sufficient motivation with the sight of its convincing manifestation.
However, the negative opinions on virtual currencies seem to be shaken. Jamie Dimon, the CEO of JPMorgan Chase, called Bitcoin “fraud” last September. Five months later, a 71-page report was published by the company’s global research team. It is titled “Decrypting Crypto-Coins: Technologies, Applications and Challenges” and dubbed the “Bitcoin Bible.” “ An extract of the document reads:
Crypto-currencies are not likely to disappear completely, and could easily survive in a variety of ways and forms among actors who want greater decentralization, peer-to-peer networks and anonymity.
Second, it is clear that the “legal and regulatory framework is difficult. ” Jay Clayton, president of the Securities and Exchange Commission (SEC)the United States considers that the classification of cryptocurrencies as a title depends on the characteristics and use of that particular asset. “
In September 2015, the CFTC made a decision that “Bitcoin and other virtual currencies are properly defined as commodities. “ Judge Jack Weinstein supported this resolution, in March.
With respect to US tax administration, a notice from the Internal Revenue Service (IRS) was published in February 2014. The document states that “the virtual currency is treated as a property. “
“Keeping cryptocurrencies is a huge challenge,” says Baldert. Amber Baldet is right, although institutional quality storage services have begun to show up. Nomura, a global investment bank, and Coinbase recently announced their new digital currency preservation operations. These pioneers obviously encourage other important players in finance who will open their own services in the future.
A global exploitation of Blockchain technology
JPMorgan developed its own Blockchain technology in 2016 to compensate and regulate derivatives and cross-border payments. However, Baldet has expanded its use by saying:
It is an open, completely independent and agnostic project for the industry.
In parallel, the former Executive Director left her position at JPMorgan in April to form a partnership with Patrick Mylund Nielsen. Their collaboration aims to found a new company, Clovyr, which develops an appstore of decentralized applications, via the Blockchain.
What do you think of Baldet’s comments on the imminent global launch of traditional banks in the cryptocurrency industry? Tell us your opinion in the comments section below.