Nobody uses crypto to pay for things anymore, says JPMorgan payments boss

JPMorgan Chase’s head of global payments Takis Georgakopoulos argued that cryptocurrencies have “a niche use case” and said the need for Cryptocurrencies as a method of payment has fallen sharply in the past six months.

Georgakopoulos, speaking in an interview with Bloomberg Television on Tuesday, said that while the bank continues to serve customers, want to use cryptocurrency as a payment methodthey don’t have to take any more major risks when these coins are not popular.

“When it comes to cryptocurrencies as a payment method, we say there was a lot of demand for our customers, say until six months ago. We see very little at the moment,” concludes Georgakopoulos.

Still betting on this field

JPMorgan was one of the first banks to move into the crypto space, and despite the recent drop in popularity and prices, the bank is still betting big on the crypto-asset sector. While knocking off the recent popularity of cryptocurrencies, Georgakopoulos took the opportunity to exploit the many benefits of digital currencies.

“Blockchain technology fully has a number of great advantages: the fact that people can exchange information without a centralized exchange, [and] when it comes to security, privacy, etc,” said Georgakopoulos. JPMorgan also sees the gaming space as another area of ​​growth where “the intersection of real, virtual, and crypto” in both traditional and metaverse games is becoming larger.

But with the recent collapse in crypto prices showing little sign of ending, it’s unclear when the cryptocurrency’s popularity will return. Cryptocurrencies have experienced the steepest downturn on record in the market this year and have lost more than $2 trillion from their market value in less than a year. Popular digital asset companies like Terraform Labs and Three Arrow Capital have been pushed into bankruptcy and the crypto king Bitcoin, valued at over $65,000 in November 2021, is still around. less than $20,000.

How about other alternative payments?

When asked about other digital tokens like central bank digital currency (CBDC), Georgakopoulos is tired of making any predictions as there is very little information on how it will work. of the country’s digital currencies.

“We have yet to see them and the rules of how they will play out, excluding China,” said Georgakopoulos, referring to the Chinese digital yuan that has been trialed since five years. 2020 and is one of the major economies but faces scrutiny and criticism abroad over its ability to track.

Georgakopoulos said JPMorgan believes blockchain and digital currencies used as alternative payment options have some inherent advantages but also face some major obstacles.

Georgakopoulos noted: “The most exciting thing about a digital currency on a blockchain is its ability to move information and value at the same time, in real time, without any of the constraints of payment systems. traditional math,” noted Georgakopoulos, which is why JPMorgan is investing in its own blockchain network that can use fiat currencies as well as central bank digital or digital currencies. as they develop in the future.

JPMorgan also backed London-based digital asset startup Ownera last week through a $20 million Series A funding. He argued that in areas like the Internet of Things, smart devices and mobile, new digital payments may be needed in the future, but for now, the world still has a long way to go.

“I think we’re still… there’s a little way to go down that road,” he said.

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