‘Most of crypto is still junk’, says JPMorgan blockchain head
Umar Farooq, the head of JPMorgan’s digital assets division, has said that the majority of crypto assets on the market are “junk” and that actual crypto use cases have not yet fully materialised, as reported by Cointelegraph.
On August 29, Farooq said at a panel discussion at the Monetary Authority of Singapore’s Green Shoots Seminar that regulation has not yet kept up with the expanding industry, which is discouraging many conventional financial (TradFi) institutions from participating.
He also stated, “Most of the crypto is still junk actually, I mean with the exception of I would say, a few dozen tokens, everything else that has been mentioned is either noise or frankly, is just gonna go away.”
The JPMorgan executive additionally contended that the industry hasn’t developed sufficiently to be used at scale to support high-value “serious transactions” between TradFi institutions or to host products like tokenised deposits (an existing bank deposit held as a liability against depository institutions).
Farooq further suggested, “You need all of those things to mature so that you can actually do things with them. Right now, we are just not there yet, most of the money that is being used in Web3.0 today, in the current infrastructure, is for speculative investment.”
Cointelegraph further noted that although JPMorgan has become more open to cryptocurrencies in recent years, the banking behemoth is currently more interested in blockchain technology and how it can be used to specifically enhance TradFi services.
(With insights from Cointelegraph)