JPMorgan CEO calls crypto ‘decentralized Ponzi schemes’

JPMorgan CEO calls crypto 'decentralized Ponzi schemes'

Jamie Dimon, CEO of JPMorgan Chase, described himself as a major skeptic on crypto tokens you call currency like Bitcoin. He called them “decentralized Ponzi schemes” while testifying in front of United States lawmakers.

During an oversight hearing by the House Financial Services Committee held on Sept. 21, Dimon was asked about his reasons for not being more involved in crypto.

Dimon stressed that he believes in blockchain, Decentralized Finance (DeFi), smart contracts and “tokens which do something”, but then went on to criticize crypto tokens that identify themselves as currencies.

When Dimon was asked about his thoughts on the U.S. draft stablecoin bill, Dimon stated that he believes stablecoins can be properly regulated and should be regulated in the same way as money market funds.

Dimon once called Bitcoin a “fraud” but has repeatedly stated that he does not support the sector personally. On occasion, he has changed his mind about crypto, once highlighting its important uses in cross-border payments.

JPMorgan is pushing into the blockchain technology market despite Dimon’s concerns. JPMorgan launched its own stablecoin, JPM Coin, in October 2020. This was the first cryptocurrency that was backed by a U.S. bank and was designed to improve settlement efficiency.

The bank created an Onyx business division, dedicated to blockchain technology, a week after rolling out the currency. Large institutional customers have been using the Onyx platform for global payments round-the-clock since then.

JPMorgan was also the first major bank to enter the Metaverse after it opened its virtual lounge in Decentraland, a blockchain-based world. This was in response to a report released by JPMorgan that referred the Metaverse to as a $1 trillion opportunity.

JPMorgan has been expanding its reach into crypto and blockchain by hiring new staff. Most recently, it announced on September 9 that it had hired Tahreem kamptom, a former Microsoft executive to become its senior payments executive. JPMorgan expects Kamptom to assist in exploring blockchain technology, as his Linkedin bio indicates that he has experience with crypto-related payments methods.

Related: “Most crypto is still junk” and lacks a use case — JPMorgan Blockchain head

The lawmakers also asked top U.S. bank CEOs if they were planning to finance crypto mining. Jane Fraser, CEO of Citigroup, Brian Moynihan CEO of Bank of America, and Charles Scharf, CEO of Wells Fargo, all stated that they had no plans to do so.

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