When it comes to the adoption of cryptocurrencies by an institutional financial body, there is nobody that comes close to JPMorgan. There used to be a time when JPMorgan was right beside the Bank of America and other major financial institutions in opposing cryptocurrencies.
As time changed as well as the situation around cryptocurrencies, JPMorgan turned soft and flexible around cryptocurrencies. It soon became a cryptocurrency proponent and since then, any statement it has released is in favor of the crypto-verse.
Even when the overall crypto-verse is facing the worst time, where Bitcoin (BTC) is in the worst situation, it finds the full backing of JPMorgan. Despite the current bearish trend being observed by Bitcoin (BTC), JPMorgan is sticking to its $146k per BTC prediction by the end of 2021.
As JPMorgan is a financial banking giant as well as a security provider to its cryptocurrency investors, it is expected of JPMorgan to pay very close attention to cryptocurrency markets.
Being a proponent for cryptocurrencies and Bitcoin (BTC), JPMorgan has earned the right to have its fair share of advice and remarks over global adoptions of cryptocurrencies.
Since the last week, the hottest topic in the cryptocurrency industry as well as globally is none other than El Salvador’s legal tender for cryptocurrencies. On June 9, 2021, El Salvador Parliament voted with the vast majority in favor of legalizing cryptocurrencies in the country.
This caused a huge ripple in the entire crypto-verse as well as the entire real-world as other Latin American countries are also boarding the crypto-ship. Countries such as Brazil, Panama, and Mexico are also looking to legalize cryptocurrencies to benefit from the industry on a large scale.
Now that El Salvador has expedited the process of adopting cryptocurrencies, the IMF has jumped in and shared its concerns over the matter. The IMF has claimed that the recent move made by El Salvador may end up raising many legal and financial concerns.
Therefore, JPMorgan has commented on the recent developments and the recent statement made by IMF’s spokesperson Gerry Rice.
JPMorgan stated that the recent move made by El Salvador is not to bring stability to the economy, it is to bring growth to it. The country has shifted its orientation from stabilizing its economy to growing it and cryptocurrencies are a vital step towards this movement.
The banking giant has stated that it is not just the President of El Salvador who is after economic growth. It is the entire regulatory and federal structure of the country that wants it and the recent passing of the bill is very demonstration of that.
The bill received a historic approval rate from the parliament of El Salvador, which was 62 votes out of total of 84 votes in favor of the bill.
However, the IMFT may not see it the way El Salvador sees it and this may result in hampering the negotiations between IMF and El Salvador.
El Salvador is reportedly in talks with IMF over a $1 billion loans to deal with the potential budget deficit of $3.2 billion it is expecting to face in 2021.