Kevin O’Leary Says, JPMorgan Feels Threatened by the Way Crypto Disrupts Payment System.
Kevin O’Leary, multi-millionaire venture capitalist and Shark Tank host, said on Sept 28 that JPMorgan Chase’s CEO Jamie Dimon feels threatened by how the crypto space disrupts payment systems.
Stablecoin May Lead to a Reduction in Fees Across the World
His remarks followed Dimon’s statement that he had no faith in “crypto tokens” or digital currency like Bitcoin, referring to them as “decentralized Ponzi schemes” in the United States congressional testimony last week.
According to O’Leary, friction is one of the major problems in the traditional financial system because it is what allows banks to profit from transaction fees, adding stablecoins can reduce fees everywhere.
“This isn’t about speculation on asset price. This is about reducing the fees of how the world’s economies work, more transparent, more productive, completely auditable, regulated, but less expensive.”
He added, “So, does Jamie Dimon feel threatened? You are damn right, he does. That is a big part of how he makes money.”
Cryptocurrencies called stablecoins offer investors price stability either through their backing by specific assets (such as the US dollar) or through algorithms that adjust their supply in response to demand.
Regulating Digital Assets
A venture capitalist outlined the US regulatory environment, explaining that sovereign wealth funds and pension funds are taking their time before adding digital assets to their portfolios.
“If you are a sovereign wealth fund or a country that is oil rich, perhaps you are generating a quarter of a billion in the 12 hours. The only place on earth you can plot that is in the S&P. The only way you can do that is to be compliant with the SEC rules. They are never going to make a move against the SEC in any way until these rules are determined,” he said.
As a result of a regulatory shift in the U.S. approach to digital assets, O’Leary believes all crypto assets will appreciate by 10% overnight. Legislators are working on a stablecoin regulation bill that could be approved by the end of the year.