JPMorgan company has made its report known about the current situation in the cryptocurrency market.
The financial firm’s head of global head of payments, Takis Georgakopoulos has revealed that the firm has witnessed a significant decline in demand for crypto payments by its clients in the past six months. The company however remains bullish on cryptocurrency, according to Bloomberg.
The crypto industry has been shaken this year by events that have led to a market downturn. The collapse of Do Kwon’s Terra Luna has contributed to its fall.
Takis Georgakopoulos, head of Payments at JPMorgan Chase bank, has revealed that demand for crypto payments by its customers has crashed significantly in the past six months.
“We saw a lot of demand for our clients, let’s say up until six months ago. We see very little right now.” Georgakopoulos stated during an interview with Bloomberg Television.
Despite the decline in demand for crypto payments and the unfavorable market conditions, Gergakopoulos has made it clear that the bank will continue to support crypto use cases.
“But we continue to support those use cases. We don’t take principal risks. But if someone wants to use their crypto as a payment method, we can support that. Just that it’s a niche use case, at least for now,” he added.
While the current shortage of demand for crypto payments by JPMorgan customers is not an entirely strange occurrence, as cryptocurrency investors generally shy away from spending their holdings during a bear market, preferring to ‘hodl’ on instead, the story is different for other market participants.
JPMorgan is the largest lender in the United States with a balance sheet of $2.87 trillion.