JPMorgan says most cryptocurrencies are garbage

Umar Farouk, head of digital assets at JPMorgan, suggested that most crypto assets on the market are «garbage» and that real-world use cases for cryptocurrencies are not yet fully represented. During a panel discussion at the Monetary Authority’s Green Shoots seminar in Singapore, Farooq said that regulatory policy has not yet caught up with the cryptocurrency industry. He also expressed the opinion that, with the exception of a few, most crypto assets are useless.

«Most of the cryptocurrencies are still 'garbage'. I mean, except for a few dozen crypto assets, the rest are either just created for quantity or will disappear altogether in the future. I don’t think there are many options for using cryptocurrencies yet. Regulation hasn’t caught up with the industry, so the financial industry is lagging behind the cryptocurrency sphere,» the JPMorgan executive said.

Farooq believes that the cryptocurrency industry has not yet reached the level of development to be used for large and serious transactions between traditional financial institutions or for tokenization of cash deposits. «We need cryptocurrencies, blockchain, and Web3 to mature. Then we will be able to use them, but it is too early. Most of the funds invested in Web3 and the current infrastructure are speculative investments,» Farouk summarized.