Cryptocurrency Skeptic Dimon: "We Will Participate in Stablecoins"

Major U.S. banks are expressing positive views on issuing stablecoins.

A stablecoin is a type of cryptocurrency designed to minimize price volatility by pegging its value to a specific asset. Stablecoins are primarily structured to maintain a fixed exchange rate with the U.S. dollar or euro. U.S. Treasury bonds are frequently used as collateral to support their value.

According to CNBC and Reuters on the 15th (local time), Jamie Dimon, chairman of JPMorgan Chase and often known as the “Emperor of Wall Street,” stated during an earnings conference call, "We will participate in both JPM Coin (JPMD) and stablecoins in order to understand them and do it well." Chairman Dimon is a prominent skeptic of cryptocurrencies on Wall Street.

However, Dimon also said, "I don’t know exactly, but I think these things do exist in reality," adding, "But I don’t understand why you would want stablecoins instead of just a simple payment method."

Acknowledging that fintech companies involved in stablecoins are "very smart," he said they are trying to find ways to create bank accounts and enter payment systems and rewards programs.

He emphasized, "We need to recognize that. The way to do that is direct participation. That is why we will enter this sector, learn a lot, and become a player."

J.P. Morgan is the largest bank in the United States and a giant in global payments, with nearly $10 trillion (about ₩13,900 trillion) circulating daily. As frameworks for regulating stablecoins are taking shape, local media have analyzed that J.P. Morgan’s exploration of this sector is logical.

J.P. Morgan is not the only entity weighing participation in stablecoins.

Jane Fraser, CEO of Citigroup, also stated during a post-earnings conference call that they are "looking into issuing a ‘Citi Stablecoin.’" She added, "Perhaps the most important area we are reviewing is tokenized deposits," saying, "This is a good opportunity for us."

Brian Moynihan, CEO of BofA, also stated last February that if regulations permit, they could launch a stablecoin.

Meanwhile, the U.S. House Committee on Financial Services designated this week as "Crypto Week" and aimed for the passage of three cryptocurrency-related bills, including the "Genius Act," which effectively means the institutionalization of stablecoins. However, due to differences in handling the bills, the House voted down the procedural vote to start deliberation by 196 to 222.

Lee Song-ryeol, Hankyung.com reporter yisr0203@hankyung.com