Jamie Dimon, CEO of JPMorgan, criticizes cryptocurrency and calls Bitcoin a pyramid scheme

Jamie Dimon has stepped up his criticism of Bitcoin and certain other cryptocurrencies, stating that they do nothing but siphon cash from new buyers to distribute as profits to their current owners.

Dimon said during the hearing on holding America’s largest banks accountable, “These are decentralized Ponzi schemes and the concept that it’s good for everyone is ridiculous.”

JPMorgan’s CEO told the House Financial Services Committee on Wednesday, “I’m a big skeptic of crypto tokens, which you call currencies like bitcoin.

He pointed out how cryptocurrencies help crimes like sex trafficking, money laundering and theft. It’s risky, he explained.

In fact, Dimon stated that he wouldn’t mind a properly regulated “stablecoin,” which is a form of digital money whose value is pegged to a reliable asset like the US dollar.

The multi-billionaire banker highlighted a distinction between “proper” technology such as blockchain, decentralized finance (DeFi) and tokens that streamline operations or serve other purposes, and digital coins that are entirely speculative.

Mentioning the existence of a JPMorgan coin that can be exchanged for dollars at a set rate, he claimed, “We are a big user of blockchain.” It can be moved in the same way as cryptocurrencies, with a constant value and minimal ones Costs.

Speaking before the same congressional committee in May 2021, Dimon asserted that cryptocurrency was inferior to traditional assets like dollars and gold. He encouraged regulators to scrutinize them and warned investors not to buy them.

In addition, the head of JPMorgan claimed that Bitcoin is a scam and the commotion around it will be disastrous in 2017. One of several well-known executives to bring up the topic of cryptocurrency is Dimon. Warren Buffett stated in April that he would not pay $25 for every bitcoin in existence. Charlie Munger, Buffett’s business partner, claimed that cryptocurrency is worthless, threatens the stability of the US financial system and makes the US look stupid compared to other countries that have banned it.

The price of bitcoin, which rose to nearly $64,000 in November, is currently around $20,000. During the same period, the market cap of all cryptocurrencies declined by more than two-thirds, from nearly $2.8 trillion to $930 billion. On Wednesday, Dimon also spoke about his forecasts for the US economy. He warned that rising gas and food prices would put American households under pressure. His list of concerns for the nation also included ongoing supply chain issues, Russia’s invasion of Ukraine and the Federal Reserve’s tightening of monetary policy.

Even the most seasoned economists are at odds over whether the storm clouds gathering over the horizon will become a major economic storm or something far less serious.

Summary of the news:

  • Jamie Dimon, CEO of JPMorgan, criticizes cryptocurrency and calls Bitcoin a pyramid scheme
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