JPMorgan's Global Head of eCommerce Solutions Ron Karpovich said in his interview with CNBC’s Squawk Box he believes there is a partnership rather than competition between crypto disruptors and financial institutions. In his point of view, crypto disruptors always need to use banks to move funds. Since the banking sector does not have large margins, it is extremely important to be efficient, which has also led to consolidation of the space, he said.
He notes that doesn't necessarily mean the banking sector has warmed up to cryptocurrencies, pointing out “there’s a difference between trading a cryptocurrency that’s in the market that’s ubiquitous versus using the technology to enhance your payments infrastructure.”
Karpovich blockchain could transform the payment sector as it can allow a faster and cheaper way to do banking. However, that doesn’t necessarily mean the change will be visible to the customers as they will continue using their preferred payment types, such as cards, when making payments.
According to Karpovich, “We look at the technology as being a means to doing things faster and cheaper: Every CEO would like to make things faster and cheaper.”