Kevin O’Leary – in a conference of Converge22 (which was held on 8th September) – shared the fear of Jamie Dimon about the disruption that is caused by cryptocurrencies in the case of traditional payment systems. Kevin O’Leary is a venture capitalist who possesses several million and is the anchor of Shark Tank and Jamie Dimon is the CEO of JPMorgan Chase.
According to Kevin O’Leary JPMorgan’s CEO Is Afraid of the Payment System’s Disruption
After Dimon’s statement, in which he says he is somehow doubtful about the functionality of crypto coins, Kavin expressed his views about it. He called all these currencies ‘Ponzi schemes’ of the DeFi sector while addressing the U.S. Congress in the previous week. Kavin illustrated the whole conflict that banks earn money via the transaction fee, which the users of traditional currency have to pay per transaction.
According to him, the introduction of stablecoins will minimize this issue globally, this is what haunts the traditional bankers. The conflict does not revolve around the worth of assets, but the way through which the whole cost of the financial system will be reduced. This takes into account a complete package of inspection, transparency, regulation, and more productivity available at the minimum possible cost.
Then he says Dimon is right in his thought because this is going to be a huge obstacle in his way of earning money. The government assets including pensions need a secure regulatory system before adopting the digital currency. He explained the concept via an example. He said suppose any oil-producing country which is earning almost 1 quarter of an enormous $1,000,000 amount in a day, there is no safe place to keep it, other than S&P.
Kevin O’Leary Says Modification in the Strategy for Crypto Regulation Can Be Helpful
The authorities have to comply with SEC’s rules and regulations for that, he added. A country will only go to the SEC if its regulatory system is transparent and secure. O Leary says if the U.S changes its regulatory strategy towards cryptocurrencies then it will acquire 10% appreciation from all the crypto organizations overnight.
United States authorities are developing a bill to launch a stablecoin which is expected to be approved shortly. Stablecoins are categorized under a crypto class which spares investors from its price fluctuation. The reason is that these coins are always pegged with particular assets, which can either be algorithmic currencies or dollars.