It emerged last week that JP Morgan Chase NA has consented to pay customers $2.5 to settle a class-action lawsuit. In 2018, the banking giant billed buying of cryptocurrency with Chase credit cards as cash advances, which resulted in higher fees.
According to a motion filed in New York federal court, the bank is going to pay the plaintiffs around 95% of the fees they were unlawfully charged. Interestingly, JP Morgan did not admit any wrongdoing as part of the settlement.
When the story broke out, it received diverse reactions in the Blockchain community around the world. QT decided to interact with some experts in the space to get our readers their views.
Jeff Catalano, Founder and CEO at Payment Porte Token opined it is very ironical that people chose to buy Cryptocurrencies using JP Morgan Chase’s services. He stressed:
“Pretty simple, why did Crypto customers trust Chase to be their intermediary into the Crypto purchase? Oxymoronic at best, and, sad to say the least. When you dance with the devil, and you get burned!”
However, Fred Brandon, who is the founder of Brand New Technologies, insisted JP Morgan is changing their attitude when it comes to Cryptocurrencies. “I think since they are legitimately moving into the Crypto space, they are changing their stance and policies toward crypto,” he said.
Brandon, a Certified Fintech Professional, moreover thinks, it seems like the leading global financial services firm is doing a little damage control before it possibly becomes a bigger issue.
Banks Are Exploitative
Most of the interviewees, QT spoke to maintained that Banks are naturally exploitative. Therefore, the fallout is not accidental.
Matthias Klees, CEO at Europecoin, and a former employee of the European Union asserted that the exploitative nature of banks would never end, neither humans. He explained:
“That’s why we are fighting for STRUCTURAL instead of MORAL changes. ETHICS is a great personal feature to be good human, but the assumption or the enforcement of Ethics is insufficient when it comes to protecting society because ETHICS is exploitable.”
Catalano concurred with Klees and stated that the mandate of the banks is exploitative in reality. Hence their purpose is to extort all entities on their path.
“It is their whole purpose to extract as much capital from the Fed, its clients and customers as possible by any means necessary,” Catalano claimed. “When you are this large, connected to the cabal and have a pass to be thieves, the only penalties have always been a slap on the wrist.”
Again, Brandon agreed with the others concerning how traditional financial institutions milk the public. He maintained it either the banks like Chase change their approaches or whither.
“Crypto/Blockchain has the potential to disrupt the way they have always done things,” he estimated. “So it is an ‘adapt or get left behind’ mentality for them in my opinion.”
In a Tweet, Prosper Mwedzi, UK based Digital Assets Lawyer, was astonished how a new participant in the Crypto scene like Chase could do that. He wrote: “JP Morgan arrived late on the crypto scene and its first act was to scam its customers – you can’t make this up!”
In recent times, banks are entering Cryptoshere, offering services to their clients and the general public. A case in point is InCore, a Swiss bank that got the green light to transact in Crypto earlier this month.
Moreover, Banks like Fidelity among others have been offering digital assets services, for some time now to individuals, and corporate clientele. As the sector grows and attracts the legacy financial system, should it be a concern to the public, that they would be short-changed?
Image Credit: Kinobey