Jamie Dimon Bashes Bitcoin While Ramping Up Blockchain Team at JP Morgan

Jamie Dimon, CEO of JPMorgan Chase, reiterated his stance against Bitcoin to Congress, stating that “If I was the government, I’d close it down”. This public declaration of crypto animosity from one of Wall Street’s titans seems at odds with the actions of his own firm, which has been bolstering its blockchain team significantly over the last three years.

Growth in the Shadow of Criticism

While Dimon’s Bitcoin critiques are nothing new, the expansion of JPMorgan’s blockchain unit, Onyx, tells a different story. From a modest team of around 100 employees three years ago, Onyx now boasts a workforce of 300. This growth is not just in numbers; the unit handles about $1 billion in blockchain transactions every day.

Dimon’s Consistent Duality

Dimon has consistently differentiated his views on Bitcoin versus blockchain technology. “He hates Bitcoin. But he loves enterprise blockchain. He’s even intrigued by DeFi,” says Noelle Acheson, a crypto and macroeconomics expert. This sentiment from Dimon has been evident through his past actions and statements, such as his 2014 comment about Bitcoin being a poor store of value, and his 2017 threat to fire traders dealing in Bitcoin.

JPMorgan’s Blockchain Focus

The scale of JPMorgan’s blockchain efforts places them in the league of other financial institutions like Fidelity and BNY Mellon, who have openly embraced crypto. But JPMorgan’s blockchain transactions are carried out using JPM Coin, a stablecoin pegged to the dollar, which runs on a private blockchain. This is in stark contrast to the decentralized nature of public cryptocurrencies like Bitcoin.

Institutional Embrace of Blockchain

Despite the CEO’s personal disdain for cryptocurrencies, JPMorgan is deeply invested in blockchain technology. The firm provides clearing services for Bitcoin and Ethereum futures and options listed on the Chicago Mercantile Exchange (CME) and has an investment in Consensys, known for the Ethereum-based MetaMask wallet.

The Enterprise Blockchain Horizon

Umar Farooq, the head of Onyx, believes in the disruptive potential of blockchain technology. In line with Dimon’s beliefs, Farooq stated that the tech behind Bitcoin is not to be discounted, even if opinions on Bitcoin’s value may vary.

JPMorgan’s involvement extends to collaborations with firms like Apollo, aiming to launch an enterprise blockchain network offering tokenized financial instruments. Acheson highlights the operational differences between crypto assets and blockchain technology, noting the wide variety of applications beyond digital currencies.

While Jamie Dimon’s remarks on Bitcoin continue to echo his past sentiments, JPMorgan’s actions suggest a strategic embrace of blockchain technology’s potential. The bank’s careful distinction between cryptocurrency trading and blockchain infrastructure development reflects a nuanced approach to a rapidly evolving digital assets landscape. As the financial world grapples with the integration of these new technologies, JPMorgan’s dual path under Dimon’s leadership will be one to watch.