JPMorgan CEO calls crypto ‘decentralized Ponzi schemes’

Whereas testifying earlier than United States (U.S.) lawmakers, JPMorgan Chase CEO Jamie Dimon referred to himself as a “main skeptic” on “crypto tokens that you just name forex like Bitcoin,” labeling them as “decentralized Ponzi schemes.”

Dimon was requested what retains him from being extra energetic within the crypto area throughout an oversight listening to held by the Home Monetary Providers Committee on Sept. 21.

Dimon emphasised that he sees worth in blockchain, decentralized finance (DeFi), ledgers, sensible contracts, and “tokens that do one thing,” however then proceeded to lambast crypto tokens that establish as currencies.

Requested for his ideas concerning the draft U.S. stablecoin invoice, Dimon mentioned he believes that there’s nothing incorrect with stablecoins which can be correctly regulated and that the regulation needs to be just like what cash market funds are topic to.

Dimon has as soon as described Bitcoin as a “fraud” and has reiterated previously he has no real interest in backing the sector on a private degree. He has softened his stance on crypto every now and then, as soon as highlighting that it might serve necessary use instances at instances resembling cross-border funds. 

Regardless of Dimon’s views on the cryptocurrency area, JPMorgan has been pushing into the blockchain know-how area. The monetary large launched its personal in-house stablecoin — JPM Coin in October 2020 — the primary cryptocurrency backed by a U.S financial institution, which was aimed toward growing settlement effectivity.

Per week after rolling out the coin, the financial institution launched a brand new enterprise division devoted to blockchain know-how referred to as Onyx. Since then the Onyx platform has been utilized by giant institutional clients for round the clock world funds.

JPMorgan additionally grew to become the primary main financial institution within the Metaverse following the opening of its digital lounge within the blockchain-based world Decentraland in February. The transfer adopted a report that was launched by the agency which referred to the Metaverse as a $1 trillion alternative.

JPMorgan has been hiring new employees to push into the blockchain and crypto area, most lately saying on Sept. 9 that it has employed former Microsoft govt Tahreem Kamptom to be its senior funds govt. Kamptom is anticipated to assist JPMorgan discover blockchain tech given his Linkedin bio reveals he has labored on crypto-related fee strategies.

Associated: ‘Most of crypto remains to be junk’ and lacks use case — JPMorgan blockchain head

Through the listening to, the lawmakers additionally requested different prime U.S financial institution CEOs whether or not they had plans to finance crypto mining. Citigroup CEO Jane Fraser, Financial institution of America CEO Brian Moynihan, and Wells Fargo CEO Charles Scharf all advised that their banks had no intentions of doing so.