Earlier this week it was reported that major multi-national investment bank JP Morgan had offered accounts to both Coinbase and Gemini.
The surprising move comes two years after JP Morgan’s CEO, Jamie Dimon, labelled Bitcoin as a “fraud” that had no value.
Experts are now predicting that with the likes of JP Morgan hopping on board, mass adoption will accelerate as credibility around the asset class increases.
Ted Quek, CTO of Broctagon Fintech Group said: “It is interesting to see how the tables have turned here. A CEO who once called Bitcoin a ‘fraud’ is now recognising the real-use cases for crypto in financial services. It is a testament to how sector-wide attitudes are shifting.
“What was once regarded by many as ‘internet money’ is slowly stumbling its way into mainstream acceptance. Only recently, Paul Tudor Jones has also thrown his hat into the crypto mix, and now high-profile exchanges are receiving the backing of one of the most renowned financial institutions on the planet.”
Really exciting how much positive news there's been in crypto recently incl:
– JPMorgan banking Coinbase & Gemini
– Paul Tudor Jones' public support of Bitcoin
– Square Cash App's major growth in bitcoin revenue
– Reddit's beta testing of Eth tokens
There's a lot of momentum 🔥
— Linda Xie (@ljxie) May 14, 2020
He added that while it will undoubtedly improve sentiment among public investors, there is still a way to go with institutions due to the lack of regulatory frameworks that underpin cryptocurrencies.
Quek continued: “Public perception might be swayed by this move, but the institutional traders will still have some questions and concerns without a protective regulatory framework. It is becoming increasingly clear that crypto can no longer be cast aside and governments must act quickly to establish agreed-upon regulation for crypto and digital assets.”
In December the first signs of JP Morgan’s u-turn was displayed when it announced the launch of a Japanese blockchain payment network that will be used by 80 banks in Japan.
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