‘Most cryptocurrencies are still junk’ and don’t have a use case – JPMorgan blockchain head

Umar Farooq, head of JPMorgan’s digital assets division, pointed out that most crypto assets on the market are “junk” and the real use cases of crypto have yet to fully present themselves.

At a panel discussion at the Monetary Authority of Singapore’s Green Shoot seminar on August 29, Farooq explained that regulation has yet to catch up with the growing industry, which prevents many traditional financial (TradFi) institutions from participating.

He opined that there is a lack of utility for most crypto assets with few exceptions.

“Most cryptos are still garbage, I mean, except for a few dozen tokens, everything mentioned is either noise or frankly just lost.”

“So in my mind, the usability issues haven’t been fully addressed, and the regulation hasn’t been finalized, and I think that’s why you’re seeing the financial industry as a whole, a little bit slower to catch on,” Farooq added. who serves as CEO of JPMorgan’s blockchain unit Onyx Digital Assets (ODA).

JPMorgan’s executive division is tasked with facilitating high-value “heavy transactions” between TradFi institutions or as tokenized deposits (currently a bank deposit with a liability on depository institutions).

Instead, Farooq crypto, blockchain and the broader Web3 movement are mainly providing a vehicle for wild speculation at this stage.

“All these things need to mature so that you can do things with them. Now, we’re not there yet, most of the money being spent on Web 3 today, in the existing infrastructure, is for speculative investment.

Although JPMorgan has become relatively crypto-friendly in the past two years, the banking giant is mainly focused on blockchain technology, and how to improve TradFi services.

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In May, Cointelegraph reported that JPMorgan had tested bond settlements via its own private blockchain. The two parties to the trial were Black Rock Inc. He observed that money market funds are delegating shares.