JPMorgan Chief executive officer calls crypto ‘decentralized Ponzi schemes’

While testifying before U . s . States (U.S.) lawmakers, JPMorgan Chase Chief executive officer Jamie Dimon known themself like a “major skeptic” on “crypto tokens that you simply call currency like Bitcoin,” labeling them as “decentralized Ponzi schemes.”

Dimon was requested what keeps him from being more mixed up in crypto space throughout an oversight hearing held through the House Financial Services Committee on Sept. 21.

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

Requested for his ideas about the draft U.S. stablecoin bill, Dimon stated he believes that there’s no problem with stablecoins which are correctly controlled which the regulation ought to be much like what money market money is susceptible to.

Dimon has once described Bitcoin like a “fraud” and it has reiterated previously he’s little interest in backing the sphere on the personal level. He’s softened his stance on crypto occasionally, once highlighting that it may serve important use cases at occasions for example mix-border payments. 

Despite Dimon’s thoughts about the cryptocurrency space, JPMorgan continues to be pushing in to the blockchain technology space. The financial giant launched its very own in-house stablecoin — JPM Gold coin in October 2020 — the very first cryptocurrency supported by a U.S bank, that was targeted at growing settlement efficiency.

Per week after moving the gold coin, the financial institution launched a brand new business division focused on blockchain technology known as Onyx. Since that time the Onyx platform was used by large institutional customers for round-the-clock global payments.

JPMorgan also grew to become the very first major bank within the Metaverse following a opening of their virtual lounge within the blockchain-based world Decentraland in Feb. The move adopted a study which was released through the firm which known the Metaverse like a $1 trillion chance.

JPMorgan continues to be hiring new staff to push in to the blockchain and crypto space, most lately announcing on Sept. 9 it has hired former Microsoft executive Tahreem Kamptom to become its senior payments executive. Kamptom is anticipated to assist JPMorgan explore blockchain tech given his Linkedin bio shows he’s labored on crypto-related payment methods.

Related: ‘Most of crypto continues to be junk’ and lacks use situation — JPMorgan blockchain mind

Throughout the hearing, the lawmakers also requested some of the best U.S bank CEOs whether or not they had intends to finance crypto mining. Citigroup Chief executive officer Jane Fraser, Bank of the usa Chief executive officer John Moynihan, and Wells Fargo Chief executive officer Charles Scharf all recommended their banks didn’t have intentions of doing this.

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