29 July 2016
Find out more

Wells Fargo and JPMorgan take contrasting stance on bitcoin

24 January 2014  |  10867 views  |  2 Bitcoin

Wells Fargo and JPMorgan have highlighted the contrasting views in US banking circles over the future viability of bitcoin, with the former willing to engage and the latter airily dismissing the digital currency as a passing fad.

Following a private summit on the digital currency at its HQ last week, Wells Fargo is stepping up its exploration of the potential of bitcoin by hosting an open discussion in New York at the end of the month.

Entitled 'Virtual Currency: Viability, Compliance and Direction', the 28 January event will take place at the offices of venture capitalist firm Union Square Ventures. Moderated by Jim Richards, Wells Fargo's head of financial crime risk management, the meeting will feature five 15-minute presentations from representatives of law firm Buckley Sandler, Unions Square Ventures, Circle Internet, Coinbase and the US Justice Department.

The debate is open to the public, but due to space restrictions will be capped at 60 seats.

Wells Fargo's interest in the subject stands in stark contrast to the approach of JPMorgan, where chief executive Jamie Dimon has forecast a bleak future for bitcoin as a viable currency. Speaking to CNBC, Dimon described bitcoin as "a terrible store of value", adding that it could be "replicated over and over".

He went on to attack the currency for its use as in illicit transactions, arguing that it will never stand up to regulatory scrutiny.

"It doesn't have the standing of a government," he said. "And people who will get upset with it is governments. Governments put a huge amount of pressure on banks: know who your client is, did you do real reviews of that. Obviously it's almost impossible to do with something like that."

His remarks have attracted the scorn of ardent bitcoin proponents, who point out the value of hard cash as an aide to nefarious criminal activities and the fact that banks themselves are no strangers to money laundering, given the huge fines levied on law-breaking financial institutions by regulators the world over.

However, Dimon doesn't think bitcoin will disappear overnight.

"They will eventually be made as a payment system to follow the same standards as the other payment systems and that will be probably be the end of them," he said.

Comments: (2)

Bo Harald
Bo Harald - ZEF and Real Time Economy Program - Helsinki region | 24 January, 2014, 12:45 Adding costs and making life easier for shady operators..
Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Russell Bell
Russell Bell - Fastbase Ltd - Wellington | 27 January, 2014, 04:43

Yes benefitting operators like Madoff and Iksil, and costing taxpayers epic dough for the benefit of reckless mortgage borrowers.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

London hosts Satoshi Square bitcoin meetup

London hosts Satoshi Square bitcoin meetup

17 January 2014  |  4075 views  |  1 comments | 5 tweets | 1 linkedin
Feds get go-ahead to sell $28 million bitcoin stash; eBay UK to open virtual currency category

Feds get go-ahead to sell $28 million bitcoin stash; eBay UK to open virtual currency category

17 January 2014  |  5474 views  |  2 comments | 5 tweets | 10 linkedin
Singapore lays down tax rules for bitcoin business

Singapore lays down tax rules for bitcoin business

09 January 2014  |  4582 views  |  0 comments | 9 tweets | 8 linkedin
Bitcoin smashes $1000 mark on Zynga adoption

Bitcoin smashes $1000 mark on Zynga adoption

06 January 2014  |  4076 views  |  0 comments | 7 tweets | 7 linkedin
Indian bitcoin exchange shuts after central bank warning

Indian bitcoin exchange shuts after central bank warning

02 January 2014  |  6734 views  |  1 comments | 7 tweets | 3 linkedin
Norway says bitcoin an asset, not a currency

Norway says bitcoin an asset, not a currency

16 December 2013  |  5578 views  |  2 comments | 11 tweets | 6 linkedin
PayPal boss backs bitcoin, but not as a currency

PayPal boss backs bitcoin, but not as a currency

11 December 2013  |  5595 views  |  1 comments | 14 tweets | 12 linkedin
Swiss to vote on proposals to treat bitcoin as foreign currency

Swiss to vote on proposals to treat bitcoin as foreign currency

10 December 2013  |  35221 views  |  0 comments | 31 tweets | 13 linkedin
China bans banks from bitcoin transactions as Wall Street wades in

China bans banks from bitcoin transactions as Wall Street wades in

05 December 2013  |  6409 views  |  7 comments | 9 tweets | 6 linkedin
Senate Committee sets date for bitcoin hearing

Senate Committee sets date for bitcoin hearing

11 November 2013  |  6947 views  |  0 comments | 6 tweets | 4 linkedin
Bitcoin Foundation meets US lawmakers

Bitcoin Foundation meets US lawmakers

27 August 2013  |  6764 views  |  0 comments | 7 tweets | 5 linkedin
New York regulator opens investigation into virtual currencies

New York regulator opens investigation into virtual currencies

14 August 2013  |  6359 views  |  0 comments | 10 tweets | 8 linkedin
Anarchists, idealists and capitalists struggle for bitcoin's soul

Anarchists, idealists and capitalists struggle for bitcoin's soul

03 July 2013  |  8436 views  |  0 comments | 4 tweets | 4 linkedin

Related company news

 

Related company information

JPMorgan Chase

Related blogs

Create a blog about this story (membership required)
Find out moreVisit www.abe-eba.euVisit capgemini.com

Top topics

Most viewed Most shared
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6924 views comments | 16 tweets | 22 linkedin
Groupe BPCE agrees to buy FidorGroupe BPCE agrees to buy Fidor
6448 views comments | 26 tweets | 40 linkedin
hands typing furiouslyManaging Big Data After Brexit
6254 views 0 | 6 tweets | 8 linkedin
UK and South Korea build 'fintech bridge'UK and South Korea build 'fintech bridge'
6019 views comments | 13 tweets | 14 linkedin

Featured job

Find your next job