JPMorgan CEO calls crypto ‘decentralized Ponzi schemes’
Jamie Dimon, CEO of JPMorgan Chase (NYSE: JPM), has increased his condemnation of Bitcoin (BTC) and other cryptocurrencies by comparing them to a ‘Ponzi scheme.’
Dimon told United States legislators on September 21 that, on a personal level, he is a huge sceptic of cryptocurrencies and has previously referred to Bitcoin as a ‘scam.’
Dimon said, “I am a sceptic of crypto tokens, which you term money, such as Bitcoin….>They are decentralized Ponzi schemes.”
During a time when some governments are considering accepting Bitcoin as legal money, he also took issue with cryptocurrencies that identify as cash. In addition, the CEO emphasized the significance of blockchain, decentralized financing (DeFi), ledgers, and smart contracts.
JPMorgan’s participation in blockchain
Notably, despite Dimon’s criticism of Bitcoin, JPMorgan is aggressively implementing blockchain technology into its businesses. For example, the lender’s token for intraday repurchase agreements is called JPM Coin. The token lets other financial institutions get short-term loans secured by valuable collateral.
In light of the Terra (LUNA) ecosystem breakdown, the CEO also gave his thoughts on the planned stablecoin legislation in the United States. According to Dimon, stablecoins are perfectly OK, but they should be regulated similarly to money market funds.
The proposed legislation would prohibit companies from issuing stablecoins that are collateralized endogenously.
Furthermore, Dimon has seemed to soften his attitude on cryptocurrencies on many occasions, noting that they may allow cross-border transfers effectively.