- JPMorgan CEO says cryptocurrency is nothing more than decentralized Ponzi schemes.
- Earlier, Jamie Dimon called it “fraud”.
- c. B. Morgan Chase (NYSE:) launched the first ever major cryptocurrency backed by a US bank.
The CEO of JPMorgan Chase & Co. Jimmy Dimon, at a summit with the House Financial Services Committee, argued that cryptocurrencies are nothing more than decentralized Ponzi schemes.
Jamie Dimon: Cryptocurrencies Are “Decentralized Ponzi Schemes” https://t.co/0wZZbVO4Vy pic.twitter.com/l7KDUJdeze
– Bloomberg (business) September 21, 2022
In the past, Damon has addressed himself as a crypto skeptic on several occasions, preventing him from being active in the crypto community. This wasn’t the first time the CEO had spoken out about his lack of interest in the crypto world.
Earlier, Dimon described Bitcoin as a “scam”. He added that the digital currency is only suitable for drug dealers, killers, and people who live in places like North Korea.
Damon exclaimed during the session:
I’m a major skeptic about cryptocurrencies, which you call currency, like Bitcoin. They are decentralized Ponzi schemes, and the idea that they are good for anyone is incredible.
On the contrary, the bank has been venturing into blockchain and smart contracts. JPMorgan has started using blockchain technology for collateral settlements and has conducted its trial transactions. The bank also became the first major financial institution in the metaverse after opening a virtual lounge in the blockchain-based world Decentraland last February.
Interestingly, two years ago, JP Morgan Chase launched the first ever major cryptocurrency backed by a US bank. The digital token, dubbed “JPM Coin,” will be used to settle payments between customers.
While Dimon has consistently dismissed bitcoin as a “fraud,” other management at the bank has consistently said that blockchain and regulated digital currencies have fulfilled their promises. Each JPM coin is pegged to one US dollar, which means that it is not as volatile as cryptocurrencies such as Bitcoin and is similar to a stablecoin.
The CEO of JPMorgan has emerged after believing that Cryptos Are Laentralized Ponzi Schemes for the first time in Coin Edition.