The head of JPMorgan’s digital assets unit Umar Farooq has suggested that most of the crypto assets on the market are “junk” and that real crypto use cases have yet to fully present themselves, reports Cointelegraph.
During a panel discussion at the Monetary Authority of Singapore’s Green Shoots Seminar, Farooq stated that regulation is yet to catch up to the burgeoning industry, which is holding back many traditional financial (TradFi) institutions from getting involved.
He also opined that with the exception of a few, utility for most crypto assets is lacking:
“Most of crypto is still junk actually, I mean with the exception of I would say, a few dozen tokens, everything else that has been mentioned is either noise or frankly, is just gonna go away.”
“So in my mind, the use cases haven’t arisen fully, and the regulation hasn’t caught up and I think that’s why you see the financial industry, in general, being a little bit slow in catching up,” added Farooq, who serves as CEO of JPMorgan’s blockchain unit Onyx Digital Assets (ODA).
The JPMorgan executive also argued that the sector hasn’t matured enough to where it can be utilised at scale to facilitate high-value “serious transactions” between TradFi institutions, or to host products such as tokenised deposits (an existing bank deposit held as a liability against depository institutions).