CRYTO IS DANGEROUS

While testifying before United States lawmakers, JPMorgan Chase CEO Jamie Dimon referred to himself as a “major skeptic” on “crypto tokens, which you call currency, like Bitcoin,” labeling them as “decentralized Ponzi schemes.”

Dimon was asked what keeps him from being more active in the crypto space during an oversight hearing held by the House Financial Services Committee on Wednesday.

Dimon emphasized that he sees value in blockchain, decentralized finance (DeFi), ledgers, smart contracts and “tokens that do something,” but then proceeded to lambast crypto tokens that identify as currencies.

Asked for his thoughts about the draft U.S. stablecoin bill, Dimon said he believes that there is nothing wrong with stablecoins that are properly regulated and that the regulation should be similar to what money market funds are subject to.

Dimon has once described Bitcoin (BTC) as a “fraud” and has reiterated in the past that he has no interest in backing the sector on a personal level. He has softened his stance on crypto on occasion, once highlighting that it can serve important use cases at times such as cross-border payments.

Despite Dimon’s views on the cryptocurrency space, JPMorgan has been pushing into the blockchain technology space. The financial giant launched its own in-house stablecoin — JPM Coin in October 2020 — the first cryptocurrency backed by a U.S bank, which was aimed at increasing settlement efficiency.
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