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JPMorgan CEO Calls Cryptos Like Bitcoin A Decentralized Ponzi Scheme

JPMorgan CEO Chase Jamie Dimon told a US congressional hearing that crypto tokens, such as bitcoin, are decentralized Ponzi schemes. He told lawmakers to be very skeptical of crypto tokens.

“I am very skeptical of crypto tokens that you call currency, like bitcoin. They are decentralized Ponzi schemes,” Dimon said as quoted from Bitcoin.com, Friday (23/9/2022).

The JPMorgan boss goes on to reference billions of dollars lost every year through cryptocurrencies, linking cryptocurrencies to crimes such as ransomware payments, money laundering, sex trafficking, and theft. He stressed crypto was “dangerous”.

The JPMorgan executive also spoke about the stablecoin, which he said would have no problem with proper regulation.

“There is nothing wrong with stablecoins, which, like money market funds, are properly regulated,” said Dimon.

Regarding blockchain, he confirmed JPMorgan is a big user of blockchain. A longtime bitcoin skeptic, Dimon has warned investors on several occasions to be cautious about investing in cryptocurrencies.

He always warned they had no intrinsic value. He previously said bitcoin was worthless and questioned the limited supply of BTC.

The head of JPMorgan, however, has repeatedly said that innovations like blockchain and defi are real. In May, global investment banks said they expect increased use of blockchain in finance.

On the other hand, JPMorgan offers several crypto-related investments, has its own JPM Coin, and has a lounge in the metaverse. JPMorgan analysts are also more optimistic about bitcoin and cryptocurrencies than bank CEOs.

In May, JPMorgan analyst Nikolaos Panigirtzoglou published a report stating that banks have replaced real estate with digital assets as our preferred alternative asset class along with hedge funds.

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