Jamie Dimon didn’t mince phrases when a US lawmaker talked about the chief’s historic previous of criticizing cryptocurrencies.
Jamie Dimon did not mince phrases when a US lawmaker talked about the chief’s historic previous of criticizing cryptocurrencies.
“i am a vital skeptic on crypto tokens, which you name forex, like Bitcoin,” the JPMorgan Chase & Co. chief govt officer mentioned in congressional testimony Wednesday. “they’re decentralized Ponzi schemes.”
Stablecoins — digital property tied to the value of the US greenback or utterly different currencies — wouldn’t be problematic with the proper regulation, and JPMorgan is energetic in blockchain, Dimon mentioned.
The suggestions symbolize the most modern criticism leveled in opposition to digital currencies by Dimon, who as quickly as referred to as Bitcoin “a fraud” earlier than in the end saying he regretted the suggestions.
house monetary providers Committee Chairwoman Maxine Waters and rating Member Patrick McHenry have been working to discover an settlement on stablecoin legal guidelines. underneath the most modern mannequin of the invoice, it may even be illegal to problem or create new “endogenously collateralized stablecoins” equivalent to these simply like TerraUSD, the algorithmic stablecoin that collapsed earlier this yr, in conserving with a duplicate obtained by Bloomberg.
whereas Dimon has been a vocal critic of Bitcoin, the agency has been focused on using blockchain for monetary providers. JPMorgan makes use of its personalized blockchain and token, JPM Coin, to conduct intraday repurchase agreements, which permits utterly different monetary institutions to take out quick-time period loans using extreme-extreme quality collateral. JPMorgan was additionally the most important Wall avenue financial institution to launch a presence inside the metaverse in February.
Dimon deemed Bitcoin a fraud in 2017, suggestions he later mentioned he regretted. In October, he mentioned it was nugatory however that he’d observe purchasers and not too prolonged in the past acknowledged that decentralized finance — the place banks are changed by algorithms — is “exact.”