Jamie Dimon, the manager of JPMorgan, has a dispute with bitcoins, shadow banking, and the financial technology industry. In a note to JPMorgan shareholders, Dimon said that institutions are taking a progressively smaller part in the financial sector, and that there is a list of things, such as virtual currencies, that must be handled  very shortly.

Banks must concentrate on the future, according to Jamie Dimon’s letter to JPMorgan stakeholders.

Jamie Dimon has sent a detailed letter to investors outlining the corporation’s accomplishments and predictions for the future. Of course, Dimon’s letter satisfies the demands of his Davos friends and the World Economic Forum’s 2030 strategy. Many of these goals were discussed by JPMorgan CEO Jamie Dimon, including tackling climate change and providing more funds to communities with limited exposure to banking.

The Wisdom Of JPMorgan Chase CEO Jamie Dimon

Aside from the milestones and potential developments, Dimon said that financial regulators are stuck in the past and that a focus on the future is needed.

In contrast to shadow banks, financial technology, and the size of the ‘Big Tech’ firms, U.S. banks have shrunk significantly, according to Dimon. Nevertheless, JPMorgan CEO Jamie Dimon believes that payment transfers passing through the US financial system are more relevant than any of these substitutes.

“Transactions made by well-controlled, well-supervised, and well-capitalized banks may be less risky to the system than those transactions that are pushed into the shadows,” reads the paper to shareholders.

Coping With Digital currencies and Competition Very Rapidly

Nonetheless, Dimon understands the importance of competitiveness in the finance industry. 

He emphasized that, “We need competition – because it makes banking better – and we need to manage the emerging risks with level playing field regulation in a way that ensures safety and soundness across the industry”. Given the competitiveness, Dimon maintains that there are significant new challenges that must be “addressed” as quickly as possible.

The JPMorgan top officials stated that, “Not only are we slow in dealing with the past, but it distracts us from dealing with the future […] There are serious emerging issues that need to be dealt with – and rather quickly: the growth of shadow banking, the legal and regulatory status of cryptocurrencies, the proper and improper use of financial data, the tremendous risk that cybersecurity poses to the system, the proper and ethical use of AI, the effective regulation of payment systems, disclosures in private markets, and effective regulations around market structure and transparency.”

Dimon is popular thanks to his dislike of digital currencies, especially bitcoin, and once referred to the pioneering digital currency as a “fraud” several years earlier.

Given this, JPMorgan has demonstrated a significant presence in bitcoin (BTC) and the cryptocurrency sector over the past year. Even though it called digital currencies the weakest protection for big equities pullbacks, it stated in February that traders should devote 1% of their assets to digital currency.

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