JPMorgan Chase CEO Jamie Dimon said in a U.S. congressional hearing that crypto tokens, like bitcoin, are & #x 201C; decentralized Ponzi schemes. & #x 201D; He told legislators: & #x 201C; I & #x 2019; m a significant skeptic on crypto tokens which you call currency. & #x 201D;
JPMorgan CEO Jamie Dimon Calls Crypto Ponzi Schemes
Jamie Dimon, the CEO of JPMorgan Chase & & Co., shared his view about cryptocurrencies, naming bitcoin in specific, in a congressional hearing Wednesday.
Reacting to a question by Representative Josh Gottheimer (D-NJ) about the quick development of digital properties, Dimon emphasized the value of separating cryptocurrencies from other developments that he said are & #x 201C; real, & #x 201D; like blockchain, decentralized finance (defi), and & #x 201C; tokens that do something. & #x 201D;
The executive believed:
I & #x 2019; m a major skeptic on crypto tokens which you call currency, like bitcoin. They are decentralized Ponzi plans.
& #x 201C; And the notion that it & #x 2019; s great for anyone is unbelievable, & #x 201D; he continued. The JPMorgan boss continued to reference that billions of dollars are lost each year through crypto, linking cryptocurrencies to crimes such as ransomware payments, cash laundering, sex-trafficking, and theft. He stressed that crypto is & #x 201C; hazardous. & #x 201D;
The JPMorgan executive likewise talked about stablecoins, which he said would not be bothersome with proper policy. & #x 201C; There & #x 2019;d be nothing incorrect with a stablecoin, which is like a cash market fund, effectively controlled, & #x 201D; Dimon stated. Regarding blockchain, he affirmed that JPMorgan is & #x 201C; a huge user of blockchain. & #x 201D; A longtime bitcoin skeptic, Dimon has warned investors on numerous occasions to be mindful about purchasing cryptocurrencies, cautioning that they have no intrinsic worth. He formerly stated bitcoin is useless and questioned BTC & #x 2019; s limited supply. The JPMorgan chief, nevertheless, has consistently said that blockchain and defi are real. In May, the international investment bank stated it anticipates increased blockchain usage in financing.
On the other hand, JPMorgan is providing some crypto-related investments, has its own JPM Coin, and has a lounge in the metaverse. JPMorgan & #x 2019; s experts are also more bullish about bitcoin and cryptocurrency than the bank & #x 2019; s CEO. In May, analyst Nikolaos Panigirtzoglou published a report mentioning that the bank has actually changed & #x 201C; property with digital properties as our favored alternative property class in addition to hedge funds. & #x 201D;
Dimon likewise just recently shared his predictions about where the U.S. economy is headed. In August, he alerted that something worse than an economic downturn is coming. In June, he cautioned about an economic hurricane, encouraging people and businesses to brace for impact.
What do you think about JPMorgan CEO Jamie Dimon & #x 2019; s remarks about cryptocurrencies, including bitcoin? Let us understand in the remarks area below.