JPMorgan’s Jamie Dimon Tells Congress Crypto Tokens Like Bitcoin Are ‘Decentralized Ponzi Schemes’ – Featured Bitcoin News

JPMorgan Chase CEO Jamie Dimon said in a U.S. congressional hearing that crypto tokens, like bitcoin, are “decentralized Ponzi schemes.” He told lawmakers: “I’m a major skeptic on crypto tokens which you call currency.”

JPMorgan CEO Jamie Dimon Calls Crypto Ponzi Schemes

Jamie Dimon, the CEO of JPMorgan Chase & Co., shared his view about cryptocurrencies, naming bitcoin in particular, in a congressional hearing Wednesday.

Responding to a question by Representative Josh Gottheimer (D-NJ) about the rapid development of digital assets, Dimon emphasized the importance of separating cryptocurrencies from other innovations that he said are “real,” like blockchain, decentralized finance (defi), and “tokens that do something.”

According to the executive,

I’m a major skeptic on crypto tokens which you call currency, like bitcoin. These are Ponzi schemes that have been decentralized.

“And the notion that it’s good for anybody is unbelievable,” he continued. JPMorgan chief John Morgan cited the billions of dollars lost annually through crypto. This linked crypto to criminal acts like ransomware payments and money laundering. He emphasized that crypto is “dangerous.”

JPMorgan executives also spoke about stablecoins. They would not pose a problem if they were properly regulated. “There’d be nothing wrong with a stablecoin, which is like a money market fund, properly regulated,” Dimon stated. Regarding blockchain, he affirmed that JPMorgan is “a big user of blockchain.”

Dimon, a long-time Bitcoin skeptic has repeatedly warned investors to avoid investing in cryptocurrency. He stated that they do not have intrinsic value and cautioned them about being too cautious. He previously said bitcoin is worthless and questioned BTC’s limited supply. However, the JPMorgan chief has stated repeatedly that defi and blockchain are real. Global investment bank JPMorgan stated in May that they expect to see increased use blockchain technology in finance.

JPMorgan offers crypto-related investment options, owns JPM Coin and hosts a lounge in metaverse. JPMorgan’s analysts are also more bullish about bitcoin and cryptocurrency than the bank’s CEO. In May, analyst Nikolaos Panigirtzoglou published a report stating that the bank has replaced “real estate with digital assets as our preferred alternative asset class along with hedge funds.”

Dimon shared recently his forecasts about the future direction of America’s economy. He warned in August that there was more to the future than a slump. He advised individuals and companies to prepare for an economic hurricane in June.

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What do you think about JPMorgan CEO Jamie Dimon’s comments about cryptocurrencies, including bitcoin? We’d love to hear from you in the comment section.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

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