JPMorgan CEO Says That the Facebook Libra Cryptocurrency Won’t Happen

JPMorgan CEO Jamie Dimon has been outspoken about Bitcoin (BTC) and other cryptocurrencies in the past. Now, the bank’s leader said that the troubled Facebook Libra cryptocurrency project isn’t going to happen.

The Libra cryptocurrency runs into more problems
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What Did He Say?

Dimon didn’t provide a lot of details on why he thinks that Libra will fail. However, he did say that it was a “neat idea” but that it won’t ever happen. He was speaking at an Institute of International Finance conference in Washington. He said that we have already have stablecoins similar to the Libra.

Of course, the JPMorgan CEO has been sceptical in the past about the value of Bitcoin. He once famously called it worthless and said that it would “end badly”.

Having said that, he doesn’t appear to be against all cryptocurrencies. JPMorgan announced that earlier this year that they had their own digital currency, the JPM Coin. What he has spoken out against in the past is the creation of money “out of thin air”.

The Loss of More Partners

Right now, the loss of a number of the project’s partners is the biggest concern for Facebook. The original group of 28 backers has been reduced due to the withdrawal of the likes of MasterCard, Visa, PayPal and Stripe.

It is believed that the intense regulatory and political focus on the proposed currency may have been too much some of those companies.

The latest backer to drop out is Mercado Libre. This company operates in Latin America and their Mercado Pago payment system and QR code mobile technology is thought to have been a key factor in their inclusion. Libra now lacks any sort of payments partner on board.

A Change of Plan?

Recent comments suggest that the currency may not be ready for the 2020 start date that was originally proposed. No new date has yet been reported.  A drastic change in how the currency works has also been mentioned.

David Marcus is the Facebook head of the Libra cryptocurrency. He has reportedly told bankers that they are willing to make some changes. Therefore, instead of a single coin backed by a basket of assets, there may be different coins, with each of them backed by a single fiat currency.

The next couple of months will be critical for the future of Libra. If they can keep hold of their remaining partners and satisfy global regulators then it is still possible that this currency could be a success.