Here’s Why JPMorgan’s Blockchain Head said that the majority of crypto is nothing but just junk

Umar Farooq, Chief Executive Officer of JPMorgan’s blockchain unit, believes that real use cases for crypto have yet to emerge and that most existing assets, with a few exceptions, are “junk.” Farooq stated at the Monetary Authority of Singapore’s (MAS) Green Shoots seminar that regulation has also not caught up with the burgeoning sector, obstructing the foray of many traditional financial institutions.

Regulated Entities For The Win

Farooq, the head of JPMorgan’s Onyx, stated that users would eventually migrate to regulated financial institutions to conduct “serious” large-value transactions because the infrastructure would be backed by the government and regulators. However, the executive stated that private options will always exist in the sector. While arguing that the industry has not matured sufficiently, JPMorgan’s executive went on to say that at this stage, a large portion of the capital in the Web 3 ecosystem is for speculative activities.

JPMorgan Ever Changing Crypto Stance

Farooq’s remark comes in the wake of MAS’s new directive, which revealed plans to limit crypto speculation while not stifling crypto innovation. The Singaporean financial regulators have repeatedly stated during the seminar that, while the digital asset industry as a whole holds excellent promise, trading in cryptocurrencies is risky for non-professional investors. JPMorgan’s views are consistent with the consensus.

Despite warming to cryptocurrency, the multinational investment bank has remained fixated on blockchain technology. As a result, it conducted a pilot transaction in which two of its entities transferred as collateral the tokenized representation of asset manager – BlackRock Inc. money market fund shares on its private blockchain. JPMorgan claimed to have achieved “instantaneous frictionless transfer of collateral assets.”