Connect with us

Blockchain

JPMorgan Chase CEO on Blockchain Technology and the ‘Very Very Tough Competition’ Against FinTech Firms

On Friday (January 15), during the JPMorgan Chase Q4 2020 Earnings Call, CFO Jennifer Piepszak and Chairman and CEO Jamie Dimon talked about blockchain technology and the “very very tough competition” in the next 10 years against FinTech firms. During the Questions & Answers segment of the conference call, Charles Peabody, President of Portales Partners, […]

Republished by Plato

Published

on

On Friday (January 15), during the JPMorgan Chase Q4 2020 Earnings Call, CFO Jennifer Piepszak and Chairman and CEO Jamie Dimon talked about blockchain technology and the “very very tough competition” in the next 10 years against FinTech firms.

During the Questions & Answers segment of the conference call, Charles Peabody, President of Portales Partners, asked the following questions:

Good morning. I have a couple of questions related to FinTech, and unfortunately, I was born in a wrong generation, so I need a lot of help. How dependent is the FinTech world on the banking system? As I understand, they lay on top of the pipes and the plumbing of the banking system. Do you have any leverage in a competitive world against the FinTech world?

And then, secondly, I noticed that the OCC gave banks the green light to use public blockchain networks and stablecoins. Can you explain what importanance that has to JP Morgan?

Jennifer Piepszak, the JPMorgan Chase CFO, replied:

Oh, OK, sure. That guidance enables an offering of stablecoins on a public blockchain. That doesn’t impact JPM Coin. JPM Coin, you should think about as the tokenization of our customer deposits.

It’s obviously very early. We will assess use cases and and customers demand. But it’s still too early to see where this goes for us.

Jamie Dimon, the JPMorgan Chase Chairman and CEO, then added:

And we are using blockchain for sharing data with banks already, and so we are at the forefront of that, which is good. The other question was about FinTech… Look, first of all, they are very good competitors… They are strong. They are smart. Some effectively ride the rails. So we bank a lot of them. You know, we help them accomplish what they want to accomplish…

My view is we are going to compete –we need to — and we have to look at our split inside of what we could do better, or could have done better, and things like that. So I am confident we will compete, but I think we now are facing a whole generation of newer, tougher, faster competitors who if they don’t ride the rails of JP Morgan, they can ride the rails of someone else…

I have told you before: everyone is going to be involved in payments. Some banks going to white label, which makes FinTech competitors white label banks and build whatever service on top of it, and we have to be prepared for that. I expect it to be veryvery tough competition in the next 10 years. I expect to win. So help me God.

Peabody then had this follow-up question:

So do they need the banking system to complete their loop of service or can they work completely outside the bank?

The JPMorgan Chase CEO replied:

Well, most of them will do for now, but I think it’s a mistake to say it’s going to be forever. They’re getting bank licenses. Utah is giving industrial licenses. Like I said, banks are white labeling. So, it’s effectively the same thing…

If a FinTech company uses a white label bank just to process their business, they’re basically a bank. You know, what the regulator will do, I don’t know, but we have to assume that they are going to do it. And that some will find ways not to use the banking system, which they have done… I am not against that. The regulators may have a point of view about that one day, but I am less worried about that. I am going to worry about us.

It is worth pointing out that on January 4, a team of J.P. Morgan global market strategists led by Nikolaos Panigirtzoglou, reportedly wrote in a note to clients that, over the long term, Bitcoin’s price could get to $146,000 and higher.

Dr. Panigirtzoglou is a Managing Director at J.P. Morgan who works on Global Market Strategy. He edits the weekly publication “Flows & Liquidity”, which is one of J.P. Morgan’s flagship publications. Before joining J.P. Morgan in 2004, he worked as a Financial Economist at the Bank of England. Dr. Panigirtzoglou holds a PhD in Finance from Queen Mary University of London, an MSc in Economics from London School of Economics, and MSc in Economics and Finance from Warwick Business School.

According to a report published by Bloomberg on December 5, Panigirtzoglou and his team wrote:

A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term… a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.

Blockchain

Bitcoin: Here’s the long-term signal you might be ignoring

Republished by Plato

Published

on

Bitcoin’s market capitalization hitting $1 trillion corresponded with a surge in price on the charts. In the said case, the last of the market volatility and network momentum pushed the price higher, before the drop that followed. However, if we look at Bitcoin as an asset to be used as collateral, there is wider scope for the vertical growth of its market capitalization.

Arcane Research’s latest report looked at the journey from $1 trillion to $20 trillion, a figure that is the value of the global market for collateral. Currently, while this $20 trillion market is dominated by government bonds and cash-based securities, there is a widening gap that is creating systemic risk in the system.

This makes it possible for Bitcoin to bridge the gap and make the collateral system largely risk-free and stable, unlike the fragility being observed right now. Counterparty risk and credit risk are currently the top two challenges in the collateral system and Bitcoin could emerge as the ideal solution in such a case.

Using Bitcoin as collateral, and how it impacts the price

Source: Arcane Research

Based on the aforementioned report, it can be estimated that around 6,25,000 BTCs are being used as collateral in the crypto-market. At their current price, that would be worth approximately $30 billion. However, right now, Bitcoin accounts for just 0.15% of the total collateral market. With the figures for the same expected to rise, the same is likely to have a positive impact on the price in the long-term.

Of late, whenever Open Interest on derivatives exchanges has hit a peak, it has coincided with times of high volatility and hikes in Bitcoin’s price, with corrections following soon after. An over-leveraged market is closer to price correction, based on past instances in previous cycles.

Using Bitcoin as collateral, and how it impacts the price

Source: Arcane Research

The attached chart, for instance, highlights the OI in Bitcoin Futures corresponding to March 2020’s Black Thursday and the recent ATH of $58,330. Since derivatives markets were the ones to first introduce Bitcoin as collateral, a hike in OI in Bitcoin Futures signals there may be an increase in the amount of Bitcoin being used as collateral, and eventually the price of the asset, in the long-term.

Now, this metric may not influence the price in the short-term as much as other metrics like trade volume, exchange reserves, and the SOPR. In the long-term, however, leveraged futures may lead to a hike in Bitcoin’s price.


Sign Up For Our Newsletter


Source: https://ambcrypto.com/bitcoin-heres-the-long-term-signal-you-might-be-ignoring

Continue Reading

Blockchain

ProBit Exchange Lists EXGold (EXG) | Gold For The Digital Age

Republished by Plato

Published

on

ProBit Exchange Lists EXGold (EXG) | Gold For The Digital Age

Advertisement &  & 

EXGold (EXG) has officially listed their token EXG on ProBit Exchange as the digital gold solution solidifies their partnership networks with one of the top South Korean exchanges and its global demographics.

EXGold was developed to capitalize on the burgeoning stable coin niche through its innovative, digitized protocol. Eliciting unmatched price stability and promising conceptual NFTs, EXGold will offer a reliable revenue stream for holders willing to subscribe to predetermined lockup periods.

Pegged to the price of gold, EXGold will reflexively mirror the price of its real-world counterpart. This relationship is immutable, meaning 1 EXGold token will always be worth the price of 1 gram of gold.

Grounded in the Ethereum protocol, EXG offers frictionless transferability and inherent scarcity, with a circulating token supply fixed at 5 million. EXGold ensures a fair, secure incentive structure with programmable smart contracts and predetermined lock-up periods. Soon to be available on Uniswap, EXGold developers are pushing to establish EXG as a potentially leading stablecoin and safe-haven asset.

EXGold’s recent partnership with a Peruvian mine, enabling direct tradeability, is a first of potentially many, real-world partners and the platform is transforming how traders interact with gold and view the “buy” and “hold” process.

Advertisement &  & 

ABOUT EXGOLD

EXGold is a digital secure way to buy and hold gold and is pegged to 1 gram of gold.

http://www.exgoldproject.com/

ABOUT PROBIT EXCHANGE

ProBit Exchange is a Top 20 crypto exchange globally. We have completed over 200 rounds of IEO and have been consistently ranked Top 4 in Korea. ProBit Exchange provides unlimited trading access highlighted by over 1,000 trading pairs.

PROBIT EXCHANGE’S GLOBAL BRAND TRUSTED BY MILLIONS OF USERS 

100,000+ community members
800,000+ monthly active users

3,000,000 monthly web visitors

50,000,000 users on partnering aggregators and wallets such as CoinMarketCap

User interface of Multilingual website supporting 41 different languages

Marketing and community support in 8 key languages

Join our active programs and get huge benefits!

1. Trading Fee Discount: Buy PROB, pay trading fees with PROB & get as low as 0.03% trading fee

2. Stake Mining: Stake PROB and earn PROB at a rate of 4% per annum 

3. Referral Program: Earn 10-30% of trading fees for referring friends to ProBit

4. ProBit Exclusive: Subscribe to 50% off Top 200 tokens 

5. Auto Hold Campaigns: Hold tokens and get 6% annualized returns

ProBit Global: www.probit.com

ProBit Korea: www.probit.kr

ProBit Telegram: https://t.me/ProbitEnglish


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/probit-exchange-lists-exgold-exg-gold-for-the-digital-age/

Continue Reading

Blockchain

Bitcoin: Another Correction Stage is Over

Republished by Plato

Published

on

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

The digital currency is actively recovering after a deep correction. For bulls, it was important to make the price rebound from the support area at $42,500. A lot of investors are scared by such high volatility of the cryptoasset, even hedge funds are pretty sure that the number of institutional investors, who are ready to invest in BTC, will significantly increase after these fluctuations slow down.

Citibank experts believe that there comes a crucial moment for Bitcoin and the digital asset may either become a global payment method or end up with another speculative blowout. JPMorgan specialists are very active in recommending their clients to hedge from other types of markets, such as stocks and precious metals, and invest up to 1% of their investment portfolios in Bitcoin and other digital currencies.

btcusd

In the daily chart, BTC/USD has once again rebounded from the area between Moving Averages and that’s still an indication of a bullish impulse. The previous movement from such an area resulted in further growth of the asset by more than $29,000. Possibly, this scenario may repeat this time as well and BTC may reach $72,000-75,000. Another signal in favor of this idea is another rebound from the support line at the RSI. However, the bullish scenario may no longer be valid if the instrument breaks the rising channel’’ downside border and fixes below $42,950. After that, the price may move downwards with the target at $29,135.

The current asset growth can’t even be stopped by growing criticism of the primary cryptocurrency. Bill Gates is sure that the performance of transactions in the Bitcoin network is extremely power-consuming if compared with conventional transfers, and that causes a lot of harm to nature in the long run. Rakesh Jhunjhunwala, who is called Indian Warrant Buffett, appealed for regulating authorities to ban BTC in India and said that the asset was just a speculation of the highest order.

Many investors think that the current aggressive growth of Bitcoin is just a temporary phenomenon caused by heightening interest among major investors. As far back as a year ago, Ray Dalio said that with cryptocurrencies moving higher and being accepted everywhere, these assets may face aggressive criticism as well as an eventual ban by authorities. This is exactly what we are witnessing right now.

btcusd

As we can see in the H4 chart, BTC/USD has broken the descending channel to the upside and may continue trading upwards to reach $65,000. However, one shouldn’t exclude that the pair may resume growing only after returning to the broken border. A strong signal in favor of a further uptrend will be a rebound from the support line at the RSI.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Source: https://themerkle.com/bitcoin-another-correction-stage-is-over/

Continue Reading
Blockchain2 days ago

Why Mark Cuban is looking forward to Ethereum’s use cases

Blockchain3 days ago

Google Finance adds dedicated ‘crypto’ tab featuring Bitcoin, Ether, Litecoin

Blockchain5 days ago

This was avoidable – The lost Bitcoin fortunes

Blockchain6 hours ago

Amplifying Her Voice

Blockchain4 days ago

Economist warns of dystopia if ‘Bitcoin Aristocrats’ become reality

Blockchain4 days ago

Inverse Finance seizes tokens, ships code: Launches stablecoin lending protocol

Blockchain3 days ago

NBA Top Shot leads NFT explosion with $230M in sales

Blockchain3 days ago

How KuCoin Shares (KCS) Can Create a Stream of Passive Income

Blockchain4 days ago

Here are 6 DEX tokens that have seen exponential growth in 2021

Blockchain4 days ago

6 Questions for Kain Warwick of Synthetix

Blockchain3 days ago

Korean Government To Levy Taxes On Bitcoin Capital Gains Starting 2022

Blockchain3 days ago

Litecoin, Monero, Dash Price Analysis: 28 February

Blockchain4 days ago

PARSIQ Integrates Solana Blockchain on its Platform

Blockchain4 days ago

XRP, STEEM, Enjin Price Analysis: 27 February

Blockchain4 days ago

3 reasons why Reef Finance, Bridge Mutual and Morpheus Network are rallying

Blockchain5 days ago

‘Bitcoin could reach $1 million or $1, and may do both of those’

Blockchain3 days ago

Top 5 cryptocurrencies to watch this week: BTC, BNB, DOT, XEM, MIOTA

Blockchain3 days ago

Polkadot, Cosmos, Algorand Price Analysis: 28 February

Blockchain4 days ago

What are the risks of trading cryptocurrencies?

Blockchain3 days ago

How did Bitcoin lending become so popular?

Trending