Danny Masters says that "analogue financial services companies" and "digital financial services companies" are engaging in a "trench warfare" in an interview
Masters is a former trader with JP Morgan and ran their New York energy trading business in the 1990s. Since then, he started his own commodities fund, Global Advisors - which has then switched its focus to cryptocurrencies in 2014.
In a recent interview, he says that "there's something of a trench warfare going on between what I call analogue financial services companies and digital financial services companies".
By "analogue financial services companies", he means the big boys on Wall St i.e. banks. He claims that banks "don't want to touch the core currency, which is Bitcoin or Ethereum, they're suspicious about the industry itself".
Masters also adds that it is no longer acceptable to dismiss cryptocurrencies, while pointing out that banks have gone from being dismissive about it, to being unified in their resistance - in terms of talking down and playing down the prospects of cryptocurrencies.
In his words: "The clock has lapsed, it is no longer acceptable to dismiss it. One of the biggest dismissers was Jamie Dimon. JP Morgan recently issued one of the largest reports on cryptocurrency yet seen".
I'll get up the JP Morgan report later on in the day when I can go through it. It's a 70-page report, rather lengthy. But anyway, the jist of it is that Masters is saying that the lack of innovation in banks (which I don't disagree with) is causing them to "pay the price" now as cryptocurrencies are sparking a new revolution in the financial world.
Banks and financial services firms are tied down with so many regulations these days, and compliance is the number one agenda when it comes to almost anything now. It's not surprising that they are behind the curve and will be for some time on this front, but if and when they do fully embrace it, expect a major shake up in the cryptocurrency landscape.
