The CEO of derivatives marketplace CME Group, Terry Duffy, has stated that the cryptocurrency market will need the backing of the government before it can be fully adopted by financial institutions.
Duffy stated that most major commercial banks do not want to fight the status quo to get involved in the cryptocurrency market and will likely await a positive shift in attitude from central governing authorities.
CME Group was one of the first to begin offering Bitcoin futures, alongside Chicago Board Options Exchange (Cboe). The launch was universally believed to be a massive credibility boost for the cryptocurrency. In the third quarter of 2018, however, the two companies only traded about 9,000 contracts each day — a small figure in comparison to futures belonging to other asset classes.
Improving Credibility of Cryptocurrency
Duffy then shifted his focus to the news that JP Morgan and Goldman Sachs have announced their own cryptocurrency offerings.
Jamie Dimon, CEO of JP Morgan, famously criticized Bitcoin (BTC) and other cryptocurrencies for several years. Claiming the market to be a scam, he said that he not only had no personal interest in any digital currency but also personally discouraged JP Morgan employees from participating or recommending the asset class. His primary argument, according to a report by Bloomberg, was that governments would swiftly shut down these currencies due to their inability to exert control over them.
JPM Coin: Missing the Point?
Needless to say, the cryptocurrency market has matured a lot since two years ago and has found a fair bit of legal certainty along the way. Institutional investors have also entered the market in droves, much to the amusement of CME Group’s CEO.
Towards the end of 2018, Jamie Dimon began to backtrack on his earlier criticisms. At one point, he said that he would stop talking about the digital currency market altogether. However, he chose to highlight the universally-accepted potential of blockchain technology and said that it could be of use to the financial services company. He concluded by stating that, while cryptocurrencies have potential, they are not necessarily perfect in their current state. It is perhaps for this reason that JP Morgan has come up with its own JPM Coin.
Duffy pointed out this shift in attitude, explaining that it is likely due to overwhelming acceptance of cryptocurrency in the institutional realm. JP Morgan’s customers would likely go elsewhere if the company maintained its long-standing pessimistic stance on Bitcoin.
What do you think of Terry Duffy’s statements? Do you think JP Morgan launching its own token is a desperate move? Let us know your thoughts in the comments below!
Images courtesy of YouTube, Shutterstock.