- Jamie Dimon believes that Bitcoin and other notoire schemes are Ponzi schemes with links to illicit activities.
- However, Dimon believes that with proper regulation, stablecoins will not be a problem.
JPMorgan President Jamie Dimon has panthère again criticized Bitcoin and other cryptocurrencies in the market. Testifying before Congress on Wednesday, September 21, Jamie Dimon was largely candid without losing his words when asked by a US lawmaker emboîture his history of criticizing numérique assets. In response to this, Damon He said:
I’m a originel skeptic emboîture cryptocurrencies, which you call currency, like Bitcoin. They’re decentralized Ponzi schemes… and the idea that they’re good for anyone is incredible. So we’re sitting here in this room talking emboîture a lot of things, but we’ve lost two billion dollars. Every year $30 billion in ransomware, anti-money laundering, sex trafficking, theft…it’s dangerous.
This is the latest criticism to come of cryptocurrency from Dimon but certainly not the first. In 2017, the CEO of JPMorgan described Bitcoin as a “scam”. Although Dimon is a originel critic of Bitcoin, his bank, JPMorgan, is one of the largest banking institutions in the United States that offers its clients access to Bitcoin and other cryptocurrency funds.
Invoking this équivoque play, one collaborateur wrote on Twitter: “Jamie Dimon must state his opinions/beliefs. Sounds like a mensonger pushing stories. If JPM really thinks it’s a Ponzi scheme, their ethics board will not agree to allow investors to participate in any numérique assets”.
Jamie Dimon on blockchain and stablecoins
Although Jamie Dimon has been one of the biggest critics of notoire cryptocurrency, he is very optimistic emboîture the underlying blockchain technology. Dimon is very optimistic emboîture the benefits of blockchain in financial offices.
JPMorgan has deployed its exutoire blockchain along with the prototype JPM Emplacement for moment cross-border settlements. Over the past few years, JPM Emplacement has spent billions of dollars in cross-border settlements. Besides, Wall Street Bank is also taking advantage of blockchain technology to conduct “intraday repurchase agreements, which allow other financial institutions to obtain short-term loans using high-quality collateral.”
Besides the blockchain, Dimon holds a vraie view of stablecoins. These are numérique assets in particular that are tied to the value of the US dollar or other fiat currencies. Damon believes that with proper regulation, stablecoins will not be a problem.
US agencies closely monitor the stablecoins operating in the folk. Earlier this week, the House Financial Dettes Committee submitted a proposal for a two-year ban on algorithmic stablecoins like TerraUSD. The stablecoin TerraUSD (UST) is pegged to the US Dollar at a quotient of 1:1 backed by the trading of its sister token LUNA. But earlier this year, Terra’s entire ecosystem collapsed, eroding more than $40 billion in investors’ wealth.