The CEO of JPMorgan believes that stablecoins can do things that fiat money cannot, alongside implementing a partnership agreement with Coinbase.
JPMorgan Chase CEO Jamie Dimon, once famous for his fierce criticism of cryptocurrencies, has had a notable change in perspective on digital assets. In an interview with CNBC on Thursday, the leader of the largest bank in the United States expressed clear support for stablecoins while maintaining a skeptical stance on Bitcoin.
Dimon stated: 'There are things that stablecoins can do that traditional cash cannot.' He emphasized that the decision to enter this field stemmed from customer demand, not the bank's personal preference. 'That’s what customers want, not what JPMorgan personally wants,' he explained.
These statements reflect Dimon's calculated caution with digital assets, but also acknowledge the potential of blockchain technology and JPMorgan's readiness to meet market demand. Nevertheless, this CEO maintains a tough stance on Bitcoin, declaring: 'I believe in stablecoins, I believe in blockchain, but personally I do not believe in Bitcoin.'
This clear distinction shows JPMorgan's pragmatic approach to blockchain technology, separating support for the underlying technology from the acceptance of specific crypto assets. Dimon also emphasizes the customer service philosophy: 'You are the customer – I don’t like telling customers what they should or shouldn’t do with their money.'
Strategic partnership agreement with Coinbase
Dimon's new perspective is specifically reflected in JPMorgan's announcement of a partnership agreement with Coinbase this week. According to the agreement, starting next year, JPMorgan customers will be able to directly link their Chase bank accounts to their crypto wallets, facilitating the purchase of digital assets.
The bank will also implement a seamless and secure function to convert reward points into cryptocurrency, opening up access to crypto for millions of customers. Coinbase, as the largest crypto exchange in the United States and listed on Nasdaq, becomes an important strategic partner in realizing JPMorgan's digital vision.
This collaboration takes place against the backdrop of stablecoins being increasingly accepted in the traditional financial system. From an intermediary tool for crypto traders, stablecoins are now attracting interest from banks, technology corporations like Meta and Amazon, and even some states in the United States, thanks to their ability to accelerate payments through blockchain technology.
The legal framework for stablecoins is also being refined with the signing of the GENIUS Act earlier this month, establishing the first federal framework for issuing and trading stablecoins in the U.S. This creates a more stable legal environment for financial institutions like JPMorgan to participate in the market.
Dimon's journey from a critic of Bitcoin to a supporter of stablecoins reflects an evolution in thinking about digital assets. Previously, he referred to Bitcoin as a 'pet rock' and claimed it was only useful for criminals. However, JPMorgan continues to deploy blockchain technology in its products, showing a clear distinction between Bitcoin as a speculative asset and blockchain as a financial technology infrastructure.
In Thursday's trading session, JPMorgan's shares on the NYSE fell more than 1%, while Coinbase's shares on Nasdaq rose slightly under 1%. This difference may reflect market expectations regarding the benefits Coinbase will gain from its partnership with the largest bank in the United States.