JPMorgan: Demand for Crypto as Payment Method Has Drastically Declined

Global funding financial institution JPMorgan is seeing little demand for crypto as a fee methodology. However, the financial institution famous that cryptocurrencies have gotten “bigger and bigger” within the gaming sector, together with within the metaverse.

JPMorgan Sees Little Demand for Crypto as a Payment Tool

The world head of funds for JPMorgan’s Corporate & Investment Bank division, Takis Georgakopoulos, talked about shopper demand for crypto as a fee methodology in an interview with Bloomberg Television this week. He mentioned:

We noticed quite a lot of demand for our purchasers, let’s say up till six months in the past. We see little or no proper now.

While noting that the demand for crypto as a fee instrument has drastically declined, Georgakopoulos pressured that the financial institution will nonetheless assist purchasers who need to use crypto for this goal.

He added that cryptocurrencies are additionally turning into “bigger and bigger” within the gaming sector — each in conventional gaming and within the metaverse, the place he sees many alternatives.

This week, JPMorgan CEO Jamie Dimon additionally reiterated his skepticism about bitcoin and cryptocurrency. “I’m a significant skeptic on crypto tokens which you name foreign money, like bitcoin. They are decentralized Ponzi schemes,” the chief mentioned. However, he emphasised that he’s not skeptical about blockchain and decentralized finance (defi), calling them “actual” improvements.

A latest survey carried out by Deloitte in collaboration with Paypal discovered that over 85% of merchants “are giving excessive or very excessive precedence to enabling cryptocurrency funds.” In addition, “almost three-quarters of these surveyed reported plans to just accept both cryptocurrency or stablecoin funds throughout the subsequent 24 months.”

A distinct survey by Bank of America confirmed “rising curiosity” in crypto’s use as a fee methodology. “39% and 34% of respondents reported utilizing crypto / digital belongings as a fee methodology to make on-line or in-person purchases, respectively,” the financial institution described. Additionally, 49% and 53% of respondents expressed curiosity in utilizing crypto / digital belongings to make both on-line or in-person purchases, respectively.

What do you consider JPMorgan saying that there’s little demand for crypto as a fee instrument? Let us know within the feedback part under.