JPMorgan Chase CEO Jamie Dimon said his bank — the largest in the United States — is probably one of the biggest adopters of blockchain technology, in an interview at the Financial Markets Quality Conference on Tuesday.
“We’re probably one of the biggest users of blockchain, as an actual user, as a real user,” Dimon said when asked about innovative technologies like blockchain and artificial intelligence. “It’s just a database.”
However, Dimon, who has long been a cryptocurrency skeptic and compared Bitcoin to a “pet stone,” has not changed his stance on the industry, which he has called “worthless.” He has continued to use his famous phrase: “Cryptocurrency… I call it a pet stone.”
However, Dimon appears to have gained a grudging respect for the technology behind cryptocurrencies, noting that blockchain is a “great way to share data” and establish trust between banks and their customers.
In 2020, JPMorgan modified a version of Ethereum to create a private, permissioned network called Onyx. This system is designed for wholesale payments, peer-to-peer lending and borrowing, as well as cross-border payments.
The Onyx network has processed over $700 billion in transactions and counts companies such as Goldman Sachs, DBS Bank, and BNP Paribas among its users.
Dimon has been a supporter of blockchain technology but has been an opponent of cryptocurrencies for years. In Davos, Switzerland in 2021, Dimon called Bitcoin an “overblown scam” but praised blockchain as an “efficient” way to move money. (Bitcoin is up more than 40% since then, according to The Block’s price page.)
“We’ve been talking about blockchain for 12 years, and not much has happened — not like AI,” Dimon said Tuesday.
Dimon, who once told a congressional hearing that he would ban cryptocurrencies “if I were in government,” is reportedly a candidate to be Treasury Secretary if Donald Trump wins re-election, a position he appears to be softening toward.
While Dimon said Chase is unlikely to lend against cryptocurrency, he is certain that some customers have access to some cryptocurrency services through the bank.
"If you want to... it's a free country. I believe in a free country, do what you want," Damon added.
