JPMorgan Chase & Co .: cryptocurrency, rather a speculative asset

15.06.2020 / Payment system news

Despite the fact that digital instruments have begun to demonstrate a closer relationship with fiat money, they are unlikely to be able to replace traditional means of calculation, according to JPMorgan Chase & Co.

Thus, in a letter sent to investor clients, experts note that in recent months the liquidity of such assets on trading floors has been more stable than in instruments such as securities, gold, and US treasury bonds. The cost of the first cryptocurrency sharply recovered after the March fall, which can not be said about traditional assets. Thus, analysts note that digital instruments successfully passed their first stress test, even with the existing volatility. In addition, it is emphasized that during the March panic, crypto estimates did not differ much from their internal values.

“Digital assets will remain a new asset class, which is likely to be used for speculation than for saving or conducting transactions on a par with fiat,” concluded JPMorgan Chase & Co.