James Dimon, CEO of JPMorgan, Calls Crypto “Decentralized Ponzi Schemes”

“I am a major skeptic of crypto-tokens, which you call currency, like Bitcoin,” James Dimon, CEO of JPMorgan Chase, a New York-based multinational investment bank, said in testimony to Congress, when asked what prevents him from being more active in coding field. “It’s a decentralized Ponzi scheme,” said Dimon, as he stated his strong opinions against cryptocurrency in his recent testimony to Congress where he was summoned for his continued criticism of cryptocurrency, Bloomberg reported.

Dimon added that stablecoins (digital assets tied to the value of the US dollar or other currencies) would not be an issue with proper regulation.

Notably, JPMorgan Chase uses the blockchain for collateral settlements and for trading traditional financial assets. However, the US legislation drafted to regulate stablecoins could impose a two-year ban on coins similar to Terra USD. Under the latest version of the bill, it would be illegal to issue or create “internally secured stablecoins,” According to Bloomberg. “The definition will go for stablecoins that are marketed as convertible, redeemable, or repurchased for a fixed amount of monetary value, which only depends on the value of another digital asset from the same originator to maintain their fixed price.”

Damon’s controversial statements in the past

Dimon is known for making controversial statements when it comes to cryptocurrencies. He considered Bitcoin a scam in 2017 but later said he regretted making that statement. Later, he said it was worthless, but would follow up on clients, and more recently, he acknowledged that decentralized finance, where banks are replaced by algorithms, is “real.”

Early this year in June, Dimon told investors at a company conference to prepare for an economic “hurricane.” Dimon later clarified that a hurricane-like economic situation is not a foregone conclusion but a possibility, which is why he urged lawmakers to prepare for the worst “so that we take the right actions if and when it does.”

The negative comments made by JPMorgan CEO Chase towards cryptocurrency can be seen as a way to protect traditional finance services as crypto comes as a competition.

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