JPMorgan's CEO Dimon expresses skepticism about stablecoins but declares entry, stating "we cannot stand by"

## "Cannot be an observer"

According to a report by CNBC, Jamie Dimon, CEO of JPMorgan Chase, stated during the earnings briefing on the 15th that while he cannot understand the appeal of stablecoins, entering the business is unavoidable. As the largest bank in the U.S., handling nearly $10 trillion in payments daily, the bank is set to intensify its involvement in the cryptocurrency field in response to regulatory changes and market conditions.

JP Morgan announced last month the trial operation of the "JPMD Token," a stablecoin-like product available exclusively to customers. Mr. Dimon stated, "I intend to engage with and understand both JP Morgan Deposit Coin and stablecoins, making it my area of expertise," revealing a strategy mindful of competition with fintech companies.

Stablecoins are cryptocurrencies that are pegged to fiat currencies such as the US dollar, and are said to enable faster and lower-cost remittances compared to traditional banking payment systems. The JPMD token operates on the blockchain platform "Base" developed by Coinbase, and is expected to be utilized for on-chain payments for institutional investors and in transactions between international corporations.

Also, Citigroup announced at its earnings briefing on the 15th that it is "considering the issuance of a Citigroup stablecoin," and Bank of America CEO Brian Moynihan has also expressed similar intentions to enter the market. Among major banks, there are discussions about collaborative measures, such as those similar to the person-to-person instant payment service "Zelle," aimed at competing with PayPal and Block's Cash App.

Mr. Daimon has criticized Bitcoin as a "Ponzi scheme" for many years, but there is a growing interest from many financial institutions, such as BlackRock's Bitcoin ETF gathering assets worth trillions of yen. He acknowledges customer purchases of Bitcoin but maintains a stance of denying holdings as JP Morgan.