CEO of JPMorgan fears payment system disruption says Kevin O'Leary

By: Mark Jessy

CEO of JPMorgan fears payment system disruption says Kevin O'Leary

September 29, 2022 6:49 AM

The host of "Shark Tank" predicted that stablecoins would reduce friction and fees around the world at Converge22.


At a Converge22 panel on September 28th, Shark Tank host and multimillionaire venture capitalist Kevin O'Leary claimed that JPMorgan Chase CEO Jamie Dimon is threatened by the way the crypto space is disrupting the payment systems.


After Dimon last week called cryptocurrencies like Bitcoin "decentralized Ponzi schemes" and declared himself a "major skeptic," O'Leary took the opportunity to weigh in.


O'Leary said that banks make money off of transaction fees due to friction in the traditional financial system, and that stablecoins might reduce those fees globally. As he put it:


 "This has nothing to do with asset price speculation. Reducing the costs associated with operating global economies is the focus here. In addition to being cheaper and more cost-effective, the new system will also be more open, more productive, fully auditable, and subject to stricter regulation. Do you think Jamie Dimon is in danger? Yes, you guessed correctly; he does. This is a significant source of his income."

The venture capitalist noted that sovereign wealth and pension funds are waiting for regulation before adding digital assets to their portfolios because of the current regulatory environment in the United States.


"You may be making $250,000 in a 12-hour period if you are a sovereign wealth fund or an oil-rich country. The S&P is the only global index that allows such a plot. To do so legally, you must follow SEC regulations. To put it bluntly, until these rules are established, they will never take any action against the SEC."


If the United States were to change its approach to digital assets through regulation, O'Leary claims that the value of all cryptocurrencies would increase by 10% immediately. In the United States, lawmakers are working on a bill to regulate stablecoins that could be passed by the end of the year.


Stablecoins are a type of digital currency that aims to provide price stability for its holders by peging it to a stable asset (like the U.S. dollar) or by automatically adjusting its supply in response to market forces.