Excluding a few dozen tokens, most cryptocurrencies are bound to “go away,” according to Umar Farooq, Chief Executive Officer of JPMorgan’s blockchain unit.
See related article: Singapore’s MAS says needs to do better job explaining crypto policy
Fast facts
- “Most of crypto is still junk,” he said at the Monetary Authority of Singapore’s Green Shoots seminar on Monday. “The use cases [of most cryptocurrencies] haven’t arisen fully and the regulation has not caught up.”
- The financial industry has been slow in catching up with tokenized deposits because regulation has not caught up and there are not many use cases, Farooq claimed, adding most of the capital in the Web3 ecosystem is for speculative activities.
- “What do you do if some token has touched a bad wallet on the way and finally finds its way back? Do you not cash it out?” Farooq asked.
- The bank’s blockchain lead said regulatory conditions need to clarify risks involved in large transactions in tokenized deposits.
See related article: Singapore’s central bank says cryptocurrencies have ‘no fundamental value’