Ron Karpovich, head of Global eCommerce Solutions at JPMorgan Chase, said that there is “more partnership than competition” between a financial institution and crypto-destroyers when it comes to the payment space. Karpovich did this during an interview at Squawk Box CNBC today, March 20th.
Answering a question from a CNBC presenter about how the banking giant is ready to compete with new and destructive players who can use the blockchain and cryptocurrency to provide the same services as the old guard, but with lower fees, Karpovich said:
“Ultimately, behind the scenes, they [crypto-innovators] will have to use a bank to move funds. In this space, there is more partnership than competition. […] When it comes to margins and opportunities, payments never grow at a profit, no one wants to pay for a payment. This is one of the most difficult parts of this process: you have limited resources to sell, so you need high-performance and big players. ”
Thus, Karpovich attributed a high degree of "consolidation in the payment space" to this main requirement in order to ensure the ability to make payments.
In his further comments, Karpovich noted that, although the blockchain could indeed revolutionize the payment industry, consumers in the future may not necessarily register the transformation, since the technology may well turn into a basic technology that simply ensures cost and time efficiency for services.
As for the recently introduced JPMorgan Chase JPM Coin with the blockchain, Karpovich rejected the suggestion that this move represents a reversal in the bank’s position in relation to cryptocurrency, especially given the notorious antagonism of CEO Jamie Dimon in relation to Bitcoin (BTC):
“I think that there is a difference between trading cryptocurrency, which is in the market, ubiquitous, and using technology to improve your payment infrastructure. We consider technology as a means to accelerate and reduce the cost: every CEO would like to do it faster and cheaper. So from this point of view, I think this represents the concept of using the blockchain. ”
This, he continued, is consistent with current initiatives of JPMorgan Chase, given that Karpovich considers the bank “a major player in the blockchain space,” referring to Quorum’s private blockchain platform and the interbank information network accompanying it.
Reportedly, the responses to JPM Coin were mixed, with some hailing this development as a very positive point for the crypto industry as a whole, while others criticized its proprietary and closed network structure, claiming it would perpetuate the fragmentation of the financial sector.