{"id":13430,"date":"2022-08-30T04:49:44","date_gmt":"2022-08-30T04:49:44","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/most-of-crypto-is-still-junk-and-lacks-use-case-jpmorgan-blockchain-head\/"},"modified":"2022-08-30T04:49:46","modified_gmt":"2022-08-30T04:49:46","slug":"most-of-crypto-is-still-junk-and-lacks-use-case-jpmorgan-blockchain-head","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/most-of-crypto-is-still-junk-and-lacks-use-case-jpmorgan-blockchain-head\/","title":{"rendered":"‘Most of crypto is still junk’ and lacks use case \u2014 JPMorgan blockchain head"},"content":{"rendered":"
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The head of JPMorgan\u2019s digital assets unit Umar Farooq has suggestedthat most of the crypto assets on the market are \u201cjunk\u201d and that real crypto use cases are yet to fully present themselves. <\/p>\n
During a panel discussion at the Monetary Authority of Singapore\u2019s Green Shoots Seminar on Aug. 29, Farooq stated that regulation is yet to catch up to the burgeoning industry which is holding back many traditional financial (TradFi) institutions from getting involved. <\/p>\n
He also opined that with the exception of a few, utility for most crypto assets is lacking: <\/p>\n
\u201cMost of 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.\u201d<\/p><\/blockquote>\n
\u201cSo in my mind, the use cases haven\u2019t arisen fully, and the regulation hasn\u2019t caught up and I think that’s why you see the financial industry, in general, being a little bit slow in catching up,\u201d added Farooq, who serves as CEO of JPMorgan\u2019s blockchain unit Onyx Digital Assets (ODA).<\/p>\n
The JPMorgan executive also argued that the sector hasn\u2019t matured enough to where it can be utilized at scale to facilitate high-value \u201cserious transactions\u201d between TradFi institutions, or to host products such as tokenized deposits (an existing bank deposit held as a liability against depository institutions).<\/p>\n
Instead, Farooq suggested crypto, blockchain, and the broader Web3 movement is primarily providing a vehicle for wild speculation at this stage. <\/p>\n
\u201cYou need all of those things to mature so that you can actually do things with them. Right now, we’re just not there yet, most of the money that\u2019s being used in Web3 today, in the current infrastructure, is for speculative investment.\u201d<\/p><\/blockquote>\n
While JPMorgan has become relatively crypto-friendly over the past couple of years, the banking giant is primarily focused on blockchain tech, and how it can be used to specifically improve TradFi services.<\/p>\n
Crypto Biz: <\/em><\/strong>Step aside, Warren Buffett; stablecoin issuers hold more US debt than Berkshire Hathaway<\/em><\/strong><\/p>\n
In May, Cointelegraph reported that JPMorgan had trialed tokenized collateral settlements via its own private blockchain. The test saw two of its entities transfer a tokenized representation of Black Rock Inc. money market fund shares.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
The head of JPMorgan\u2019s digital assets unit Umar Farooq has suggestedthat most of the crypto assets on the market are \u201cjunk\u201d and that real crypto use cases are yet to fully present themselves. During a panel discussion at the Monetary Authority of Singapore\u2019s Green Shoots Seminar on Aug. 29, Farooq stated that regulation is yet […]<\/p>\n","protected":false},"author":1,"featured_media":13431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-13430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"yoast_head":"\n
'Most of crypto is still junk' and lacks use case \u2014 JPMorgan blockchain head | NFT & Crypto News<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\t\n\t\n\t\n