JP Morgan Chase CEO Brands Cryptocurrencies as “Decentralized Ponzi Schemes”
- JP Morgan has made several investments in Web3 despite Jamie Dimon’s sentiment.
- The Bank became the first major financial institution in the metaverse following the launch of its virtual lounge on Decentraland.
JP Morgan Chase CEO, Jamie Dimon, expressed his views about cryptocurrencies while fielding questions about blockchain technology during a House Financial Services Committee hearing on Megabanks. Dimon maintained his criticism of cryptocurrencies when asked to justify his previous comments about crypto tokens. He said,
I’m a huge skeptic on crypto tokens, which you term currency, like Bitcoin. These Ponzi schemes are decentralized.
The JP Morgan Chase executive explained his lack of interest in cryptocurrencies, noting that he believed blockchain, Decentralized Finance, smart contracts, and ledgers had value; however, his main concern was cryptocurrencies.
When asked about his opinions on the proposed US stablecoin legislation, Dimon remarked that he believes stablecoins are acceptable as long as they are properly regulated. Dimon further suggested that stablecoin regulation should be similar to the policies that apply to money market funds.
The JP Morgan Chase boss has previously noted that he had no interest in actively supporting the crypto industry and once called Bitcoin a “fraud.” His views appeared to have softened with time, as he later admitted that cryptocurrencies could be useful in cross-border payments.
Dimon’s sentiments on cryptocurrencies have not hindered JPMorgan from investing in blockchain technology and leveraging it for financial services. The popular US bank made its intentions clear in 2020 when it launched its own in-house stablecoin, the JPM coin, which it said was to improve settlement efficiency. The JPM Coin was also the first cryptocurrency backed by a U.S. bank.
The bank later announced the launch of a new business unit devoted to blockchain technology called Onyx. The platform now serves major institutional clients for international payments.
JPMorgan has also made significant investments in the metaverse and became the first top financial institution in the metaverse with the launch of its virtual launch on Decentraland. The bank’s officials released a report identifying the metaverse as a $1 trillion industry.
JP Morgan recently expanded its staff strength to match its crypto ambitions. The banking giant employed the services of former Microsoft executive, Tahreem Kamptom, as its new senior payments executive.