JPMorgan Criticizes Public Blockchain Ledgers
JPMorgan CEO, Umar Farooq, has stated that public blockchains are not suitable for large transactions. During the BIS Innovation Summit, Farooq expressed the need for a Unified Ledger that can handle such transactions. He pointed out that public blockchain ledgers lack accountability and there is no one to hold responsible if a transaction fails. In contrast, JPMorgan’s Onyx platform, built on a private, permissioned version of Ethereum, allows institutions to reverse transactions.
Farooq further criticized the false incentives created by cryptocurrencies issued on public blockchains. He believes that these incentives are designed to attract more users and drive up the price of the coin. Instead, he advocates for blockchains to be seen as a public good, similar to the internet, rather than a means for personal enrichment.
Despite Farooq’s comments, Celisa Morin, former Vice President of Platform Distribution at Grayscale, claims that traditional financial institutions actually prefer tokenizing assets on public blockchains. She cited BlackRock’s $100 million tokenized ‘BUIDL’ fund as an example. The fund, launched on the Ethereum network, currently holds over $382 million and is considered the largest tokenization fund in the world.
JPMorgan’s CEO believes that public blockchains are not suitable for large transactions and lack accountability. There is a growing preference among traditional financial institutions for tokenizing assets on public blockchains. The debate between public and private blockchains continues as the industry seeks to find the most efficient and trusted solution.
20 thoughts on “JPMorgan Criticizes Public Blockchain Ledgers”
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The ongoing debate between public and private blockchains showcases the industry’s effort to find the most efficient and trusted solution. Exciting times ahead for blockchain technology!
The debate between public and private blockchains showcases the industry’s determination to find the most efficient and trusted solution. Exciting times lie ahead for blockchain technology!
JPMorgan’s fear of public blockchains stems from their fear of losing control. They’re just not ready to relinquish their power.
Farooq’s insights highlight the importance of accountability and transparency in transactions. It’s crucial to find solutions that address these concerns for widespread adoption.
Just another attempt by traditional financial institutions to undermine the power of cryptocurrencies and maintain their control over the financial system.
JPMorgan’s CEO should educate himself better on the benefits and capabilities of public blockchains before making such uninformed statements.
JPMorgan just wants to keep their exclusive control over transactions, even at the expense of the potential of public blockchains. Greedy much?
Onyx platform may allow transaction reversals, but that goes against the decentralized nature of blockchain! What’s the point then?
Farooq’s call for a unified ledger is a step in the right direction for streamlining large transactions. Innovation is key in adapting to the changing financial landscape.
It’s disappointing to see a CEO of such a prominent institution refusing to embrace the future of technology and innovation.
It’s ridiculous to claim that public blockchains lack accountability. The whole point is that every transaction is transparent and recorded for all to see!
Tokenizing assets on public blockchains paves the way for innovation in the financial industry. It’s great to see traditional institutions like BlackRock leading the way.
Typical corporate CEO thinking – always looking out for their own interests instead of embracing innovation and progress.
Farooq’s comments just show how out of touch he is with the potential of public blockchains to revolutionize the financial industry.
I appreciate the ongoing debate between public and private blockchains. It’s essential to find the most efficient and secure solution for the industry as a whole.
If public blockchains are so unsuitable, then why does the largest tokenization fund in the world operate on the Ethereum network? Farooq’s arguments don’t hold up.
The industry’s search for an efficient and trusted blockchain solution is an exciting journey. It’s great to see Farooq and Morin contributing valuable perspectives. 🚀
Farooq raises valid concerns about accountability in public blockchains. The industry needs to address these challenges to foster trust and reliability.
The success of BlackRock’s tokenized ‘BUIDL’ fund on the Ethereum network is a testament to the potential of public blockchains. It’s promising to see traditional institutions embracing this technology. 💪
Umar Farooq provides valuable insights into the limitations of public blockchains. It’s crucial for institutions to have a unified ledger that can handle large transactions!