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JPMorgan chief calls crypto a ‘decentralised Ponzi scheme’

JPMorgan chief calls crypto a ‘decentralised Ponzi scheme’

In a testimony to Congress earlier this week, JP Morgan CEO Jamie Dimon compared cryptocurrencies such as Bitcoin to Ponzi schemes.

Speaking to Congress, Dimon called himself a “major skeptic on crypto tokens” and elaborated that cryptocurrency, such as Bitcoin, are “decentralised Ponzi schemes, and the notion that it is good for anybody is unbelievable.”

This is not the first instance in which the JPMorgan executive has criticised cryptocurrency, as he previously expressed his distrust in cryptocurrencies in an interview with CNBC, calling Bitcoin a “terrible store of value.” He continued that the cryptocurrency had been used frequently for “illicit purposes.”

In 2017, Dimon stated that cryptocurrency was a “fraud” that is “not a real thing, eventually it will be closed.”

While Dimon’s views on crypto are not new, it is controversial considering that JP Morgan launched their own digital currency JPM Coin in 2019, which was trialed in Bahrain earlier this year and are active in pursuing Blockchain technology.

In January 2021, Dimon commented that incumbent banks should be “scared shitless” by emerging fintechs, adding that rivals such as Plaid were competing unfairly.

Comments: (2)

A Finextra member
A Finextra member 23 September, 2022, 13:051 like 1 like

Wow.... well i guess on the back of the melt down in 2008 caused by the creation of CDOs and other derivative products, that Dimon personally benefited from....  I guess Jamie Dimon became quite the expert in Ponzi Schemes!   Triples all round! 

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 26 September, 2022, 09:23Be the first to give this comment the thumbs up 0 likes

LOL I like that "triples all round!".

Indeed, compared to MBS, CDO, CDO2, etc., Bitcoin seems almost as safe as a Fixed Deposit!!

If there's one thing that's even more volatile - albeit lot less lucrative - than Bitcoin's price, it must be Jamie Dimon's take on crypto!!!