Director of e-commerce solutions JPMorgan Chase Ron Karpovich (Ron Karpovich) believes that in the space of payments between traditional financial institutions and crypto-innovators “more partnership than competition.” This view Karpovich expressed in an interview with CNBC.
The leading question, how the banking giant is ready to compete with the disruptive new players that use the blockchain and cryptocurrency to provide the same services as traditional banks, but with lower commissions, Manager, JPMorgan said
“Ultimately, behind the scenes they will have to use a Bank to move funds. In this space more partnership than competition. When it comes to margin, payments never grow up with a profit, no one wants to pay for the payment. This is one of the most difficult parts of this process: you have limited resources the ability to sell, so you need a highly efficient and large players”.
Karpovich also noted that, although the blockchain is really the potential to revolutionize the payment industry, consumers will not necessarily notice a transformation, as technology may well be the base that will provide cost efficiency and time for the provision of services.
The Bank has refuted suggestions that plans to release stablon JPM Coin means a reversal of JPMorgan Chase in respect of Cryptoprotected, especially considering CEO Jamie diamon (Jamie Dimon).
“I think there is a difference between trade cryptocurrency, which everywhere occurs in the market, and using technology to improve payment infrastructure. We consider technology as a means to accelerate and reduce the cost: every CEO would like to make it faster and cheaper. So from this point of view, I believe that this represents the concept of using the blockchain,” said Karpovich.
According to him, this is consistent with the JPMorgan Chase initiatives in the field of blockchain space, where the Bank is a major player. Karpovich recalled about the private DLT-platform of the Bank Quorum and is built on the basis of Interbank Information Network (IIN).
It is noteworthy that recently the Director of global research at JPMorgan Securities , Joyce Chang (Joyce Chang) said that the blockchain technology is still far from institutionalization and must overcome key weaknesses, before you can achieve large-scale cross-sectoral implementation.