CEO JPMorgan Calls Crypto ‘Decentralized Ponzi Schemes’

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Testifying before United States (US) lawmakers, Jamie Dimon, CEO of JPMorgan Chase, called himself a “big skeptic” about “crypto tokens you call currency like Bitcoin”, labeling them as “decentralized Ponzi- schematics”.

Dimon was asked what prevents him from being more active in the crypto space during a surveillance hearing held by the House Financial Services Committee on Sept. 21.

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

Asked about his opinion on the draft US stablecoin law, Dimon said he believes there is nothing wrong with stablecoins that are well regulated and that the regulations should be similar to those for money market funds.

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Dimon once described Bitcoin as a “fraud” and has reiterated in the past that he has no interest in supporting the industry on a personal level. He has occasionally toned down his stance on crypto, once emphasizing that it can sometimes serve important use cases, such as cross-border payments.

Despite Dimon’s views on the cryptocurrency space, JPMorgan has pushed itself into the blockchain technology space. The financial giant launched its own internal stablecoin – JPM Coin in October 2020 – the first cryptocurrency backed by a US bank, aimed at increasing settlement efficiency.

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A week after the coin’s rollout, the bank launched a new business division dedicated to blockchain technology called Onyx. Since then, the Onyx platform has been used by major institutional clients for 24-hour global payments.

JPMorgan also became the first major bank in the Metaverse after opening its virtual lounge in the blockchain-based world Decentraland in February. The move followed a report released by the company that referred to the Metaverse as a $1 trillion opportunity.

JPMorgan has hired new staff to enter the blockchain and crypto space, and most recently announced on September 9 that it has hired former Microsoft executive Tahreem Kamptom as its senior payments manager. Kamptom is expected to help JPMorgan explore blockchain technology as his Linkedin bio shows he has worked on crypto-related payment methods.

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Related: ‘Most Of Crypto Is Still Junk’ And Has No Use Case – JPMorgan Blockchain Head

During the hearing, lawmakers also asked other top CEOs of US banks if they had plans to fund crypto mining. Citigroup CEO Jane Fraser, Bank of America CEO Brian Moynihan and Wells Fargo CEO Charles Scharf all suggested their banks had no intention of doing this.