Although Jamie Dimon, CEO of JPMorgan, does not foresee a bright future for Bitcoin and cryptocurrency, Daniel Masters, who earlier led JPMorgan’s global energy trading desk, states cryptocurrencies are feeding a financial revolution.
Masters is now chairman of digital investment bank Coinshares and CIO (chief investment officer) at Global Advisors, and he revealed in an interview with Bloomberg how distributed ledger technology is arranging for the democratization of peer-to-peer transactions what the internet did for the democratization of knowledge.
“That’s at the heart of what makes this a revolution,” Masters explained Bloomberg.
He was ordered by Bloomberg about the potential for the query of “leakage” in the fractional reserve monetary system, where only some of a bank’s securities are backed by assets. Masters told no, cryptocurrencies aren’t building leakage in that leverage, at least not yet.
Masters reported a “regulatory sandbox” environment where digital assets continued for the past five years or so by the end of 2017. He announced an ecosystem that’s $1 billion – $10 billion in size “is essentially experimental in the range of the main financial system.”
But with the market exploding near $1 trillion combined with all of the crypto-fueled headlines, cryptocurrencies “suddenly became something regulators, banks … central banks and governments concluded could no longer be ignored,” stated Masters. “I don’t think there’s any concern from that community at the moment that there’s leakage .. but I think they’re beginning to understand that there is potential for that in the future,” he continued.
IMF Chief Christine Lagarde announced in a blog post now that cryptocurrencies “pose no direct danger” to the economy.
‘Crypto Market Will Be Much Bigger’
The way that Masters views the world has never been a “fight to the death between crypto and the USD/GBP legacy financial system.” Rather, he states it’s about “what part of the total financial ecosystem increases to cryptocurrencies,” adding: “I think even if it’s barely 5% at the end of the day, that business will then still be much bigger than it is today.”
Masters manages more than $800 million in cryptocurrency assets over both passive and active strategies for both leading coins such as Bitcoin, Ethereum, Zcash, and Monero forward to ICOs. As for staying away from the scam ICOs, Masters guided to a “multi-stage screening process” by which less than 3% of small ICOs that come to them make it through their filter.
Masters lately touted bitcoin as “the play” of 2018 before the cryptocurrency market had begun to turn around. He stated then that he liked ICO issuers with “non-forkable/blockchain specific ideas.” Masters had reportedly kept bitcoin since 2012 when it was trading at $100.