Dimon opined that the stablecoin Libra planned to be launch by Facebook is “a neat idea that will never happen.”
Dimon issued the aforementioned comments while speaking at the Institute of International Finance conference which took place on October 18.
Dimon stated that the plan behind Libra is not distinct and then diverted the talk by mentioning about his institution’s stablecoin JPM Coin, disclosing that JPMorgan intends to spend over $11 billion on innovations in 2019.
Dimon thus reinforced his earlier opinion of calling Libra to be of no threat to JPM Coin in the near future. The CEO had earlier stated that “to put it in perspective, we have been talking about blockchain for seven years and very little has happened. We are going to be talking about Libra three years from now.”
The JPM Coin is already used for three purposes, as per the company’s head of blockchain ventures, Umar Farooq.
They are cross-border payments for large corporate customers, which currently depend on wire transfers offered by networks such as SWIFT, securities dealings and usage in JP Morgan’s treasury facilities business to substitute the funds held by firms in various sister concerns across the globe.
Earlier this month several founding members of Libra Association deserted the venture. This includes Visa, Stripe, eBay, PayPal, Mastercard and Booking Holdings. The enterprises withdrew from the Libra venture because it is “not up to par” with American Anti-Money Laundering standards.
Lael Brainard, a member of the Federal Reserve’s board of governors, stated that Libra could become a threat to customers as there is lack of lucidity over their prerogatives with regards to the coin’s underlying assets and the overall system.