JPMorgan CEO Jamie Dimon: Crypto is a ‘decentralized Ponzi scheme’ #news

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Cryptocurrencies are unhealthy “Ponzi schemes” that put billions of bucks in danger yearly, JPMorgan CEO Jamie Dimon declared in a scathing assessment of the risky virtual property.

In congressional testimony on Wednesday, Dimon referred to himself as “a major skeptic” on cryptocurrencies like Bitcoin.

“They are decentralized Ponzi schemes, and the notion that’s good for anybody is unbelievable,” he advised lawmakers, calling Bitcoin and different cryptocurrencies “dangerous.”

Bitcoin, which was once soaring simply above $19,000 at 6:45 a.m. ET on Thursday, has misplaced greater than part its worth in 2022, as cryptocurrencies around the board have suffered a in style sell-off that’s grow to be referred to as the “crypto winter.”

House assembly

The U.S. House Committee on Financial Services held a listening to on Wednesday by which representatives from main American banks together with Citigroup, Bank of America and Wells Fargo gave proof. The committee’s Chairwoman Maxine Waters and Ranking Member Patrick McHenry are lately creating a bill on regulating stablecoins—a virtual asset magnificence that’s tied to the price of an asset just like the U.S. greenback.

Under the latest draft of the invoice, seen by Bloomberg, it will be unlawful to factor or create new “endogenously collateralized stablecoins” like TerraUSD, which collapsed earlier this year in one of the crucial greatest ever crypto bankruptcies ever.

Dimon mentioned in his testimony to the House on Wednesday that billions of bucks were misplaced yearly to cryptocurrencies, noting their hyperlinks to cash laundering, ransomware, intercourse trafficking and robbery.  

However, he argued that stablecoins would no longer be so problematic in the event that they had been correctly regulated.

Bitcoin ‘Worthless’

The JPMorgan leader has lengthy been a vocal critic of Bitcoin and different decentralized virtual property—and refuses to refer to them as currencies.

In October final 12 months, as Bitcoin’s worth was once coming near an all-time top, Dimon said the cryptocurrency was once “worthless.”

Back in 2017, he referred to Bitcoin as a “fraud”—an statement he later said he regretted. Last year, on the other hand, he doubled down on his aversion to the asset, announcing he was once “not a Bitcoin supporter” and had “no interest in it.”

JPMorgan itself hasn’t been fairly so crucial of Bitcoin, with the financial institution saying as recently as May that it noticed “significant upside” for crypto buyers. However, the lender’s bills boss mentioned this week that whilst cryptocurrency had a “niche use case,” call for for the tokens as a fee way had vastly declined over the past six months.

The company, and Dimon himself, have additionally been backers of Blockchain technology, which is the foundation of cryptocurrencies like Bitcoin.

In 2019, JPMorgan was the primary American financial institution to create and effectively check a virtual coin representing a fiat forex—on this case, the U.S. greenback. The JPM Coin, enabled by way of Blockchain, is utilized by the financial institution to carry out intraday repurchase agreements.

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